1. Illegal and unreported economic activity: While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.
2. Home production and bartered goods/services: If cash doesn't change hands, the transaction will not be included in GDP. One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.
Answer:
Units Completed and Transferred: 2,700
Explanation:
Units Completed and Transferred: Beginning Units in Process + Units Received - Ending Units in Process
Beginning Units in Process: 400
Units Received: 2,500
<u>Ending Units in Process: (200)</u>
Units Completed and Transferred: 2,700
Answer:
Here all of these options are wrong , the correct answer is regardless of how the tax is levied the burden of tax would be shared by both the seller and buyer.
Explanation:
Tax can be said as primary source of income for the government. When a tax is levied on the goods , the burden of that would have to be bear by both buyer and seller , irrelevant of how that levied . If the taxes are high then the demand by buyer would be less and seller would receive low price because less people would buy and n the case where taxes are low demand would be high and seller would receive high prices ,in both cases tax would be levied on both seller and buyer and how much it would be depends upon the elasticity of demand and supply. So all the statements given here are false or invalid.
Answer:
the rate of return required by investors to incentivize them to invest in a company
Explanation:
In finance, the cost of equity is the Cost of Equity is the rate of return which an organization pays those that invested in equity. The organization uses cost of equity to check how attractive investments are.
It can be calculated by using the CAPM which is Capital Asset Pricing Model
Answer:
To evaluate the choice, we have to calculate the present value of future cash flows and compare it with the cost. We use the following formula
present value = C × [ 
]
where
C = yearly payments = 75000
i = interest rate = 8%
n = no. of years = 15
put the given values in above equation, we get
Present value = 75000 ×8.559478688
= 641,961
Since the present value of cash flow 641,961 is less than the cost 750,000, I would not recommend it.
If Interest rate = 5%, then:
Do the same procedure as above but take i=5%
Present value = 75000 × 10.37965804
= 778,474
Since the present value of future cash flows 778,474 is greater than the cost 750,000, I would recommend it.
