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3 years ago

Which of the following transactions are included in gross domestic product, and by how much does the GDP raise?

Business

1 answer:

seropon [69]3 years ago

5 0

Answer:

A. Smith pays a carpenter $50,000 to build a garage. ⇒ INCLUDED, increases GDP by $50,000 because Smith paid for the garage.

B. Smith purchases $10,000 worth of materials and builds a garage, which is worth $50,000. ⇒ INCLUDED, increases GDP by $10,000 only because Smith built the garage himself.

C. Smith goes to the woods, cut down a tree, and uses the wood to build himself a garage that is worth $50,000. ⇒ NOT INCLUDED, no services or goods were exchanged, it is the same as growing your own food.

D. The Jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000. ⇒ INCLUDED, increases GDP by $500,000 because the Joneses purchased anew house.

E. You purchase a used computer from a friend for $200. ⇒ NOT INCLUDED, only new goods and services are included.

F. Your university purchases a new mainframe computer from IBM, paying $25,000. ⇒ INCLUDED, increases GDP by $25,000 because the university purchased a new computer.

G. You win $100 in an Atlantic City casino. ⇒ NOT INCLUDED, casino earnings or lottery earnings are not considered new products or services.

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Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has

MissTica

Process departmentalization

Explanation:

Departmentalization

An organization has separate departments based upon the different task each performs for the organization.
Functional departmentalization - a manufacturing company may have a production department, sales and marketing department, an accounting department, and a human resources department.

Product departmentalization - a company may have a wide range of products
Customer departmentalization - a company may have different customer bases
Geographical departmentalization - a company can hire employees to serve different customers from different geographical locations
Process departmentalization - a company may have employees grouped into teams for a specific process

5 0

3 years ago

The sarbanes-oxley act created the _____ to protect the interests of investors and further the public interest in the preparatio

devlian [24]

The correct answer is the Public Company Accounting Oversity Board.

The Sarbanes-Oxley Act was enacted in 2002. It’s purpose was to protect investors and add additional oversight for corporations after a number of companies were caught up in accounting scandals and investors lost billions of dollars.

8 0

3 years ago

Which of the following describes the expected outcome of expansionary monetary policy in the short run?

Vaselesa [24]

Answer:

The correct answer is letter "A": higher employment, higher output, and a higher price level.

Explanation:

Expansionary policy is a macroeconomic concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policies can be used through monetary policy to expand the money supply or to increase government expending and tax cuts to stimulate the economy. Under this scenario, interest rates are lower and aggregate demand increases. In that case, employment, output, and price level will be higher. Though, the latter is dangerous since it could lead to high inflation.

7 0

3 years ago

Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that th

qaws [65]

Answer:

The correct answer is: a new law that interferes with economic efficiency.

Explanation:

A production possibilities frontier shows all the points where production is efficient. The resources are being completely employed. The points above the frontier are unattainable. The points below the frontier are attainable but inefficient.

If there is a movement from the frontier to a point below it. This means inefficient allocation of resources. It can happen because of some law interfering in efficient allocation of resources.

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3 years ago

Dividends received for equity securities in which the investor lacks the ability to participate in the decisions of the investee

erastovalidia [21]

Answer:

False.

Explanation:

When the investor does not have decision- making power in the business, his dividend payment process is not different from any other shareholder.

When profits are declared the company debits Retained Earnings (profits) for the divedend amount, and credited to Dividends Payable.

Dividend Payable is then debitted and Cash will be credited to show money has gone out.

4 0

3 years ago