All categories

3 years ago

How does the consumer drive the economy

Business

1 answer:

lianna [129]3 years ago

4 0

Answer:

As it drops off, economic growth slows. Prices will drop, which creates deflation. If slow consumer spending continues, the economy can go into recession. When consumer demand exceeds manufacturers' ability to provide the goods and services, prices increase.

You might be interested in

What is the first step you should take in managing data for a firm?

lesya692 [45]

Organising the data in a logical way.

8 0

4 years ago

Del Norte Brick Co. is located near the intersection of Texas, New Mexico, and Mexico. Improved access to the company’s property

OLEGan [10]

Answer:

Depreciation for year 3 = $115518

BV = $57798

Explanation:

The modified accelerated cost recovery method employees a classification-based approach to depreciating certain assets, once classified are assigned respective rates of depreciation. for example, assets classified under automobiles, trucks and machinery are treated under 5-year MACRS and will be depreciated at 20%, 32%, 19.2% and so on.

In this question the bridge across Rio Grande being built by Del Norte Brick co is treated under 3-year MACRS, for which the rates are as follows:

33.33% for the first year

44.45% 2nd year

14.81% 3rd year

7.41% 4th year

We have been asked to determine 3rd years' depreciation and book value, determined as follows:

Depreciation year 1: $780000 33.33% = $259974

Depreciation year 2: $780000 44.45% = $346710

Depreciation year 3: $780000 14.81% = $115518

So the depreciation for year 3 = $115518

The book value is calculated as follows:

<em>Book value = cost - accumulated depreciation</em>

BV = $780000 - $722202

BV = $57798

6 0

4 years ago

Which of the following transactions are counted in GDP? Instructions: In order to receive full credit, you must make a selection

Inessa05 [86]

Answer:

Kerry buys a new sweater to wear this winter.

Jasmine buys a new car.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Items not included in the calculation off GDP includes:

1. services not rendered to oneself

2. Activities not reported to the government

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

The purchase of the sweater and the purchase of the new car constitutes consumption spending and it would be added as part of GDP.

The cash gift and Social Security check are transfer payment s and would not be included as part of GDP

5 0

3 years ago

Roberts Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that

Romashka-Z-Leto [24]

Answer:

August 1, sold goods on account terms 3/10, n/30

Dr Account receivable 5,000

Cr Sales revenue 5,000

Dr Cost of goods sold 3,000

Cr Merchandise inventory 3,000

Dr Accounts receivable (freight) 320

Cr Cash 320

When FOB shipping point is used, buyer pays the freight. When FOB destination is used, the seller pays the freight.

August 7, damaged merchandise returned

Dr Sales returns and allowances 1,200

Cr Accounts receivable 1,200

Dr Merchandise inventory 720 (approximately 60% since $3,000/$5,000)

Cr Cost of goods sold 720

August 11, invoice and freight charges collected

Dr Cash 4,006

Dr Sales discounts 114 (3% of $3,800)

Cr Accounts receivable 4,120 ($3,800 for the merchandise and $320 for the prepaid freight)

8 0

3 years ago

What are the causes of corruption?

Trava [24]

Answer:

attributed as causes of corruption: Greed of money, desires. Higher levels of market and political monopolization. Low levels of democracy, weak civil participation and low political transparency

4 0

3 years ago

Read 2 more answers