1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
rodikova [14]
3 years ago
11

For each of the following transactions, indicate whether it represents an increase in the U.S. gross domestic product (GDP), and

, if so, state whether it represents U.S. consumption, investment, government purchases of goods or services, or net exports. If the transaction does not change U.S. GDP explain why not?
a. Ms. Scott buys a used Honda Accordfrom her friend Danielle for $7,500.
b. You spent $12,500 on college tuition this year.
c. Pizza Hut buys 100 pounds of cheese from Wisconsin to make pizzas.
d. Mr. Luong is a Chinese citizen who works as a Chemistry teaching assistant at UC Mercedandearns $16,000 a year in salary.
e. A candy store buys $500 worth of chocolates made in Belgium.
f. Boeing produces 5 airplanes but are unable to sell them.
Business
1 answer:
babunello [35]3 years ago
3 0

Answer:

a. No change in GDP.

There will be no change in GDP resulting from this transaction. Resales are considered double counting because the good had already been paid for before and so will inflate GDP.

b. GDP increase by $12,500. U.S. Consumption.

This is a consumption transaction as money is being spent to satisfy the need for education. It will therefore increase GDP by $12,500.

c. No change in GDP.

Intermediate goods to be used in production are not included in GDP to avoid double counting. Only the final value of goods and services are included. This is an intermediate good and so will not be included.

d. Increase in GDP $16,000. Government purchase of goods or services.

Mr. Luong works in a Public University which means that his salary is paid for by the government. This will increase GDP by $16,000 as it represents money spent by Government.

e. Decrease in GDP $500. Net Exports.

As this good was bought from outside the country, it is an import. Imports reduce a country's GDP because they reduce the Net exports. GDP will therefore reduce by $500.

f. Increase in GDP by plane value. Investment.

So long as the goods have already been produced in their final form, they will be part of GDP. They will increase GDP by their value and are a part of Investment.

You might be interested in
Do you think that their economy will be strong when they have to write off debt from countries that have borrowed heavily from t
Kobotan [32]

Answer:

Yes

Explanation:

7 0
3 years ago
In 2018, Wilma Way’s sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 g
kiruha [24]

Answer:

A. $120,000 is subject to self-employment tax

B. Wilma’s 2018 self-employment tax is $16,955

C. Wilma's allowable Section 199A deduction is $21,500

D. The taxable income from her bookstore activity is $107,982

Explanation:

A. The income from normal business activities are eligible for self employment tax, therefore $120,000 is subject to self-employment tax.

B. To calculate Wilma’s 2018 self-employment tax we have to make the following calculation:

Wilma’s 2018 self-employment tax=($120,000×92.35%)×15.30%

Wilma’s 2018 self-employment tax=$16,955

C. Assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property, the computation of Wilma's allowable Section 199A deduction would be as follows:

In this case would be 50% of W2 wage, therefore:

Wilma's allowable Section 199A deduction=$43,000×50%=$21,500

D. The taxable income from her bookstore activity=Gross Income-50%self-employment tax-Wilma's allowable Section 199A deduction

Gross Income=$120,000+$17,000+$960=$137,960

50%self-employment tax=$16,955×50%=$8,478

Wilma's allowable Section 199A deduction=$21,500

Therefore, The taxable income from her bookstore activity= $137,960-$8,478-$21,500=$107,982

7 0
3 years ago
Why language is an important of communication tools? <br>​
eimsori [14]

Answer:

Because Language is a communication tool used by everyone in their daily life as a means to convey information and arguments to others. Explanation:

Makes Sense.

7 0
2 years ago
Read 2 more answers
As rationing mechanisms, prices options: a. are efficient, but long lines are inefficient. b. and long lines are inefficient. c.
valentina_108 [34]

Answer:

a. are efficient, but long lines are inefficient

Explanation:

A rationing mechanism is a system in which who gets how many goods during a shortage is carefully chosen, in order to do these long lines are used even though they are inefficient.

I hope you find this information useful and interesting! Good luck!

4 0
3 years ago
A 23-year-old ticket agent is brought in by her husband because he is concerned about her recent behavior. He states that for th
aleksandr82 [10.1K]

Answer:

b

Explanation:

manic episodes can lead to obsessive behavior

3 0
3 years ago
Other questions:
  • Privo Co. purchases a machine that cost $15,000. Privo estimates a 5-year life with no salvage value. The first three years of d
    7·1 answer
  • You are a producer of calculators. last month, a tornado at your factory eliminated 50% of your firm's production capability. at
    13·1 answer
  • On a pay stub, what is the difference between "Net Pay" and YTD Net Pay"?
    8·2 answers
  • After cost overruns of the electric project, $20 million was already spent and unrecoverable. it was going to cost $12 million m
    9·1 answer
  • ____ Do they need engage with this work or is it entirely voluntary? Do they have a direct investment in having access to this i
    11·1 answer
  • Since it was founded in 1994, Amazon has expanded its business from online book sales, to online general retailing, to audio and
    11·1 answer
  • True or False: When material inputs or intermediate products enter a country at a high duty while the final imported product is
    7·1 answer
  • A decrease in the fixed asset turnover ratio from 3.0 to 2.2 indicates a.an unfavorable change in the efficiency of using fixed
    10·1 answer
  • Jemimah was having problems with the tight scheduling and timelines given to her for one of her technical writing projects. She
    6·1 answer
  • You use $50,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. I
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!