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julsineya [31]
3 years ago
6

Consider using income approach to compute US GDP. Suppose there is a Mexican citizen working at a US firrm located in US, and ea

rned wages of $500. There is also a US citizen that earns wages of $800 in a Mexican firm located in Mexico. If US GNP is $3000, what is US GDP?
Business
1 answer:
Novay_Z [31]3 years ago
6 0

Answer:

According to the information in the text, the US GDP would be $500, because GDP only accounts for all the goods and services produced within the country, or under the income approach, for all the forms of income (rent, dividends, wages) earned by nationals or foreigners in domestic soil.

In this case, the Mexican citizen working in the US and earning $500 adds the same amount to US GDP of that year regardless of his nationality.

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3 0
2 years ago
38) A lottery ticket states that you will receive $250 every year for the next ten years. a. What is the present value of the wi
Stells [14]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

A lottery ticket states that you will receive $250 every year for the next ten years.

A)  i=0.06      ordinary annuity

PV= FV/(1+i)^n

FV= {A*[(1+i)^n-1]}/i

A= annual payment

FV= {250*[(1.06^10)-1]}/0.06= $3,295.20

PV= 3,295.20/1.06^10=1,840.02

B) i=0.06 annuity due (beginning of the year)

FV= 3,295.20 + [(250*1.06^10)-1]= $3492.91

PV= 3492.91/1.06^10= $1,950.42

C) The interest gets compounded for one more period in an annuity due.

5 0
3 years ago
Which of the following statements is FALSE regarding financial and nonfinancial measures of performance?a.Nonfinancial measures
faltersainse [42]

Answer:

D. Financial measures are lead indicators of future success.

Explanation:

This is said to be not true regarding financial and non financial measures of performance.

Businesswise, it is often debated whether a commonly perceived good company, as defined by characteristics such as competitive advantage, stable earnings, above-average management, and market leadership, is also a good company in which to invest. While these characteristics of a good company can point toward a good investment, this article will explain how to also evaluate the company's financial characteristics and how to know if a company is a good investment.

8 0
3 years ago
A company's sales budget indicates the following sales:
Ilya [14]

Answer:

26500.

Explanation:

Given: Sales of January, February and March.

           Beginning inventory is 12000.

           Company´s ratio of inventory to future sales is 45%.

Formula; unit to be produced= (\textrm{ next month budgeted sales + present months sales budget- beginning inventory})

First step: finding February´s budgeted sales

Next months (February) budgets sales= \frac{45}{100} \times 30000= 13500.

Now, putting values in the formula to find unit to be produced.

Unit to be produced in January= ((13500 + 25000 - 12000)= (38500 - 12000)

∴ Unit to be produced in the month of January is 26500.

                 

4 0
4 years ago
Olivia Company, whose reporting year ends on December 31st, purchased a vehicle for $50,000 on March 12th, 2018. The vehicle’s e
Trava [24]

Answer:

$12,600

Explanation:

If Olivia Company uses the units of production depreciation method, we must calculate the depreciation cost per mile:

depreciation cost per mile = (purchase cost - salvage value) / total miles driven

depreciation cost per mile = ($50,000 - $5,000) / 250,000 miles

depreciation cost per mile = $45,000 / 250,000 = $0.18 per miles

Now we multiply by the total miles driven the first year times the depreciation cost per mile = 70,000 units x $0.18 per unit = $12,600

5 0
3 years ago
Read 2 more answers
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