Who want to be my bff

Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for

Katen [24]

Answer:

1) C) The value of the services of the real estate agent

2) B) $6,400

Explanation:

First, there are two questions lumped together as one

Question 1: Suppose in 2016, you purchase a house built in 2003. Which of the following would be included in the gross domestic product for 2016?

A) The value of the house in 2013

B)The value of the house in 2016 minus depreciation

C) The value of the services of the real estate agent

4) The value of the house in 2016

Question 2: Suppose that a simple economy produces only four goods and services shoes. DVDs, tomatoes, and ketchup. Assume one half of the tomatoes are used in making the ketchup and the other half of the tomatoes are purchased by households.

Products Quantity Price

Shoes 40 $60

DVDs 100 $18

Tomatoes 2,000 $1

Ketchup 300 $4

Using the information in the above table, nominal GDP for this simple economy equals A) $7, 400. B) $6, 400. C) $5, 800 units. D) $2, 440.

<u>Answer to the First Question</u>

First the Gross Domestic Product of a Country usually represents the market value or referred to as total monetary value of finished products as well as services that were engaged in during a specific period of time and within the borders of that country. The thing about GDP is that it only reflects items that are captured as products or services and which are reported for the year.

In the question therefore, the GDP will only reflect the value of product or service that was newly created in 2016. The house was built in 2003, therefore the relevant GDP item (value of the house) was captured in 2003.

The only new value is the Value of the services of the real estate agent who was engaged in 2016 to facilitate the sales of the house.

<u>Answer to the Second Question:</u>

Nominal GDP represents GDP valued at current market prices for products or services.

To calculate the Nominal GDP we look at the goods and then calculate based on their current market prices.

(Shoes = 40 pieces x $60) + (DVDS = 100 pieces x $18) + (Tomatoes (1000x$1 - 1/2 purchased by households) + (Ketchup 300 x $4)

= $2400+ $1,800+ $1000+ $1,200

= $6,400

5 0

3 years ago

When individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate

notsponge [240]

Answer: rational

Explanation:

Rational expectations is a way by which individuals make their decisions based on their past experience, self interest, human rationality and the information that they have.

Therefore, when individuals acquire, process, and act on relevant economic information promptly in their own self-interest and investigate its impact on others, they are said to have rational expectations.

3 0

3 years ago

As a new controller, reply to this comment by a plant manager: "As I see it, our accountants may be needed to keep records fo

fiasKO [112]

Answer: Accountants play major role in firms in handling financial records and auditing. Managers know financial information based on either background knowledge or learning on the job

Explanation:

The accountants are valuable to the organization because they monitor the monetary information that concerns the firm, they handle how cash come in and keep track of how they are spent, all these makes them valuable even to the extent of auditing information as regarding the firm. Managers might understand financial information either based on how they monitor what occurs in the organization or what they learnt in from college. But it's unsafe for the managers to handle financial situation without the aid of a professional accountant.

6 0

3 years ago

A potential benefit of telecommuting is that it _____.

den301095 [7]

the answer is: a. reduces employee turnover

in business, potential benefit refers to the benefit that might or might not occurs depending on the performance that created from a certain decision.

Telecommunication is useful for the employers to communicate with the employees even if they not in close proximity. This allow employees to work at home and have more balance between their personal life and professional life. This balance would increase their comfort level in working with the employer and reduce the employee turnover.

5 0

3 years ago

Read 2 more answers

McConnell Corporation has bonds on the market with 18 years to maturity, a YTM of 9.8 percent, a par value of $1,000, and a curr

djyliett [7]

Answer:

13.70%

Explanation:

We use the PMT formula which is to be shown in the attachment

Given that,

Present value = $1,326.50

Future value = $1,000

Rate of interest = 9.8% ÷ 2 = 4.9%

NPER = 18 years × 2 = 36 years

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the PMT is

= $68.48 × 2

= $136.92

Now the coupon rate is

= $136.92 ÷ $1,000

= 13.70%

4 0

4 years ago