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LuckyWell [14K]
3 years ago
6

Company A produces paper and sells it to Company B for a total of $183. Company B uses the paper to make books and then sells th

e books to consumers for a total of $342.What is the value of GDP in this simple economy?
Business
1 answer:
tester [92]3 years ago
4 0

Answer:

$159

Explanation:

Value = cost of books - cost of paper

342 - 183 = 159

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

the cost of paper is not included because it is an intermediate good and not a final good.

An intermediate good is a good that is used in the production of the final good.

If it is added to GDP, it would result in double counting

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If a gain of $5,278 is realized in selling (for cash) office equipment having a book value of $50,852, find the total amount rep
Alina [70]

Answer:

B) $56,130

Explanation:

The cash flow statement shows how the company's operating, investing and financing activities affect the flow of cash by generation or use.

The investing activities section is where the purchase of fixed assets and the amount received for the disposal of these assets are accounted for.

Given that a gain was realized and the book value of  the asset was given, the amount received for the disposal

= $5,278 + $50,852

= $56,130

This is the amount that will be reported in the investing activities section of the statement of cash flows as an inflow.

6 0
3 years ago
Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
gtnhenbr [62]

Answer:

YTM = 0.6940%

Explanation:

THe Yield to Maturity (YTM) is the return that you expect from the bond if you held the bond till maturity.

The formula would go as:

YTM = \frac{F}{P}^{\frac{1}{n}} -1

Where

F is the face value, or par value

P is the current price

n is the time period, maturity period

Given,

F = 1000

P = 920

n = 12, we have:

YTM = \frac{F}{P}^{\frac{1}{n}} -1 = \frac{1000}{920}^{\frac{1}{12}} -1=0.006972

Thus, the yield to maturity would be:

YTM = 0.6940%

5 0
3 years ago
isabella takes $100 of currency from her wallet and deposits it into her checking account. if the bank adds the entire $100 to r
Tresset [83]
Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the banks add the entire $100 to reserves, the money supply increases, but if the bank lends out some of the $100, the money supply decreases.
3 0
2 years ago
International issues of social responsibility and ethical behavior are: difficult and not as clear-cut as U.S. firms would like
Arlecino [84]

Answer: difficult and not as clear-cut as U.S. firms would like them to be

Explanation:

The issues associated with social responsibility and ethical problems doesn't pertain to a particular income level or economic system.

Even though businesses in the United States always demand socially responsible behavior and good ethics from their international suppliers, the issues of social responsibility and ethical behavior are still difficult and not as clear-cut as they want them to be.

This is really a bothering issue as.it has even been suggested in the past whether the international suppliers should be made to adhere to the laws I the United States.

5 0
3 years ago
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean
charle [14.2K]
Which of the following types of business environment is MOST typical of the Commonwealth Caribbean area?
a) Corporate state
b) Mixed economy
c) Centrally planned
d) Perfectly competitive


Answer is b) Mixed economy
3 0
2 years ago
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