Choose all that apply.

In a small, closed economy, national income (GDP) is $ 400.00 million for the current quarter. Individuals have spent $ 150.00 m

Mashcka [7]

Answer:

The amount spent in this economy in the said quarter is $100,000,000.00

Explanation:

However, in closed economies what it simply means is that there are no exports and imports.

Investment (I) = business investment plus residential investment plus inventory investment. Government Purchases (G) = general government consumption plus general government investment. Net Exports (NE) = exports minus imports plus net tourism.

∴ to calculate the amount of money spent on this closed economy, I will use the Expenditure Approach formula for GDP and make Investment the subject of the formula which is

GDP formula is used which states that total output/GDP (Y) is equal to Consumption (C) + Investment (I) + Government Spending (G) + Net exports (NX). Where net exports is exports (X) minus imports (M): NX = X – M.

Where:

GDP (Y) = C + I + G + (X-M)

Where:

GDP (Y) = $400,000,000.00

C = $150,000,000.00

I = 0

G = $150,000,000.00

(X-M) = 0

GDP (Y) = C + I + G + (X-M) =

$400,000,000.00 = $150,000,000.00 + (I) + 150,000,000.00 + (X-M)

Making (I) the subject of the Formula

GDP- C -G = I

∴ $400,000,000.00 - $150,000,000.00 - $150,000,000.00 = I

∴ $400,000,000.00 - $300,000,000.00

= $100,000,000.00

The amount spent in this economy in the said quarter

= $100,000,000.00.

Note: I did not add the Tax because I used the Expenditure approach method which does not include the tax values while the Income Approach method does include it but excludes Export and Import values.

6 0

3 years ago

Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or

zubka84 [21]

Answer:

a. For each country, graph the production possibilities frontier. Suppose that without trade the workers in each country spend half their time producing each good. Identify this point in your graphs.

attached graph

b. Who has the comparative advantage in the production of shirts? What about for computers?

China has the comparative advantage in the production of shirts, while the US has the comparative advantage in the production of computers.

c. If these countries were open to trade, which country would export shirts? Give a specific numerical example and show it on your graphs. Which country would benefit from trade?

China would export 50 million shirts in exchange for 5 million computers (or more if they can). Trade would benefit the US since it will only need to trade 5 million computers in exchange for 50 million shirts, and it will still have 15 million computers that it can consume or trade with come other country.

d. Explain at what price of computers (in terms of shirts) the two countries might trade.

the minimum and maximum prices would be 5 to 10 shirts per computer. If the price of shirts per computer is 10 or near 10, then the US wins more. If the price of shirts per computer is 5 or near 5, then China wins more.

Explanation:

opportunity cost of producing 1 shirt in the US = 20/100 = 0.2 computers

opportunity cost of producing 1 computer in the US = 100/20 = 5 shirts

opportunity cost of producing 1 shirt in China = 10/100 = 0.1 computers

opportunity cost of producing 1 computer in China = 100/10 = 10 shirts

without trade:

total production of shirts in the US = 50 million
total production of computer in the US = 10 million

total production of shirts in China = 50 million
total production of computer in China = 5 million

with trade:

total production of computers in the US = 20 million
total production of shirts in China = 100 million

8 0

3 years ago

Nash Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1

Gennadij [26K]

Answer:

weighted average interest rate 10.61 %

Explanation:

construction capitalized interest

mar-01 1,848,000.00 x 10/12 1,540,000.00

jun-01 1,248,000.00 x 7/12 728,000.00

dic-31 30,198,800.00 x 0 -

capitalization 2,268,000.00

especific borrowings

$1,038,290 note at 13% = 134977.7

capitalziation through non-specifit borrowings

2,268,000 - 1,038,290 = 1,229,710.00

average rate

loan rate interest

2,241,900 10% 224,190

3,500,300 11% 385,033

5,742,200 609,223

average rate: 609,223/5,742,200 = 0.106095747

capitalized from non-specific:

1,229,710 x 10.61% = 130,467.00

total interest capitalized =

134,977.7 + 130,467 = 265,444.70

5 0

2 years ago

Calculate the presentvalue of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b.

kaheart [24]

Answer:

Given:

Amount = $5000

Tenure = 5 years.

Future value = $Present value\times (1+r)^{n}$

where

n is number of periods

r is rate per period.

(a) 6% compounded annually.

Interest is compounded annually

No of periods in 5 years = 5

Future value = 5000 $(1+0.06)^{5}$ = 5000 × 1.33823 = $6691.15

(b) 8% compounded annually

Interest is compounded annually

No of periods in 5 years = 5

Future value =5000 $(1+0.08)^{5}$ = 5000×1.46933 = 7346.65

(c) 10% compounded annually

Interest is compounded annually

No of periods in 5 years = 5

Future value = 5000 $(1+0.10)^{5}$ = 5000×1.61051 = $8052.55

(d) 10% compounded semiannually

Interest is compounded semiannually

No of periods in 5 years is 5*2 = 10

Rate per period = 10÷2 = 5%

Future value =5000 $(1+0.05)^{10}$ = 5000×1.62889 = $8144.45

(e) 10% compounded quarterly

Interest is compounded annually

∴No of periods in 5 years = 5×4 = 20

Rate per period = 10÷4 = 2.5

Future value = 5000 $(1+0.025)^{20}$ = 5000×1.63862 = $8193.10

5 0

2 years ago

The journal entry to record direct labor for Department A and Department B would include a. a decrease to Work in Process for ea

mylen [45]

Answer:

The journal entry to record direct labor for Department A and Department B would include None of these choices are correct.- d.

8 0

2 years ago