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Brrunno [24]
3 years ago
8

Suppose there is a simple one good economy that only produces spinning rims. In 2015, the economy was able to produce 1 million

sets of spinning rims at an amazing price of $500 per set. In 2016, the economy was able to produce 1 million sets of spinning rims at a price of $1,000 per set. By what amount did real GDP increase between 2015 and 2016 in the simple one good economy
Business
1 answer:
Alex_Xolod [135]3 years ago
4 0

Answer: 0

Explanation:

Firstly, we will calculate the nominal value in 2015 which will be:

= $500 x 1 million

= $500 million

The nominal value in 2016 will be:

= $1000 x 1 million

= $1 billion

Real GDP will be the price of the base year multiplied by the quantity of the current year which will be:

= $500 million x 1 million sets

= $500 million

Therefore, the increase in real GDP is zero.

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What do inflation rates measure?
My name is Ann [436]

Answer:

C. The speed with which general prices are rising

Explanation:

Inflation measures the rate at which the general prices of goods and services are increasing in an economy. During inflation, the purchasing power of a country's currency is eroded.  Inflation means a selected basket of goods will cost more this period than it did in the previous season.

The consumer price index or CPI is the most acceptable index used in determining the rate of inflation. Inflation may result from high economic growth where firms and individuals have increased incomes resulting in too much money in circulation.  A moderate level of inflation is required to promote spending and sustain favorable economic growth.

6 0
3 years ago
A house is appraised for $25,000, and shows an assessed value of $20,000. The taxes on the house are $300 annually. What would t
pashok25 [27]

Answer:

$600

Explanation:

In this situation, first we have to know that tax levy on assessed value.

<u>Computation of tax rate:</u>

Appraised Value = $25,000

Assessed value = $20,000

Tax = $300

Tax rate = ($300 / $20,000) x 100 = 1.5%

Assume Appraised Value = $45,000

Assume Assessed value = $40,000

Calculation of tax value = Assessed value x tax rate

= $40,000 x 1.5%

= $600

5 0
3 years ago
Gwen inherited 100 shares of supershoes stock when her mother died on october 21, 2015; the fair market value of the stock was $
Dafna1 [17]

Answer: Gwen should report a $3,000 long-term capital gain in her income tax return.

In this question the price paid by Gwen’s mother for the shares is irrelevant because of her death.

The stock’s fair market value ($20) when Gwen inherited the shares (21st October 2015) is Gwen stepped up value.

Gwen’s gain from selling the shares is:

Gain / (Loss) = (Selling Price per share - Stepped up value per share) * Number of shares

Gain = (50 - 20) *100

Gain = $3,000

Gwen inherited the shares on (21st October 2015) and held the shares until (3rd july 2017), so she held the shares for more than one year after inheriting it.  So, she will report a long-term capital gain on her income tax return.

5 0
3 years ago
Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potent
jeka94

They have many potential <u>Entry Modes</u> at their disposal.

<h3>What is Entry Mode?</h3>

Foreign market entrance modes in international trade are the methods through which a corporation can expand its services into a non-domestic market.

Market entrance options are classified into two types: equity and non-equity. Export and commercial agreements are examples of non-equity mechanisms. Joint ventures and totally owned subsidiaries are examples of equity models. Different entrance mechanisms differ in three key ways:

  • The level of danger they pose.
  • Control and dedication to the resources required.
  • The promised return on investment

Therefore, Companies like my​ gym, which seek to do business in new markets for manufacturing​ and/or marketing​ purposes, have many potential​ <u>Entry Modes</u> at their disposal.

For more information on Entry Modes, refer to the given link:

brainly.com/question/17232113

#SPJ4

4 0
1 year ago
True or false: if society wishes to reduce overall pollution by a certain amount, it is efficient to have firms with highest pro
AveGali [126]
TRUE

If the society wishes to reduce overall pollution by certain amount, it is efficient to have firms with highest profit bearing the largest burden of reducing pollution and firms with lowest profit bearing the least burden. This is because it will not lead to overall burden on the small firms. If large firms and small firms were to reduce the pollution burden on same rate then it will be very costly for the smaller firms to bear that and it will be a burden of cost on smaller firms.
3 0
3 years ago
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