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3 years ago

GDP does not include which of the following activities?

Business

1 answer:

alexira [117]3 years ago

5 0

Answer:

D. families eating out in restaurant

Explanation:

Gross domestic product ( GDP) is a measure of a country's level of output or production. Economists use the GDP index to determine if a company is making progress in terms of economic growth.

GDP is the aggregate monetary value of all products and services produced inside the borders of a nation in a financial period. In calculating GDP, economists can either use the income approach or the expenditure approach, the result will be the same.

One shorting of GDP is that it does not consider an increase in leisure activities. When a household is dining in a restaurant, that's a leisure activity. In the calculation of GDP, it will not count. The other threes are services that involve purchases of items; they will be included in the GDP.

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Atlantis Fisheries issues zero coupon bonds on the market at a price of $455 per bond. If these bonds are callable in 5 years at

igomit [66]

Answer:

The yield to call is 2.24%.

Explanation:

To calculate the yield to call, you can use the following formula:

YTC = (C + (CP - P) / t) / ((CP + P) / 2)

YTC= Yield to call

C= Annual Coupon: 0

CP= Call price of the bond: $509

P= Price of the bond: $455

t= time remaining until call date: 5

YTC= (0+(509-455)/5)/((509+455)/2)

YTC=(54/5)/(964/2)

YTC= 10.8/482

YTC= 0.0224= 2.24%

3 0

3 years ago

Read 2 more answers

What is the present value of $1000 paid at the end of each of the next 50 years if the interest rate is 6% per year?

zzz [600]

Answer:

$15,761.90

Explanation:

Given that

Amount paid at the end of each year = $1,000

Time period = 50 years

Interest rate = 6% per year

So, the present value of the annuity would be

= Amount paid at the end × PVIFA factor for 50 years at 6% interest rate

= $1,000 × 15.7619

= $15,761.90

Refer to the PVIFA table.

Basically we multiplied the amount with the PVIFA factor.

5 0

3 years ago

The following information is for employee Ella Dodd for the week ended March 15.

Brut [27]

Answer:

a. The total earnings is $840

The total deductions is $313

The cash paid is $527

b. The Social security and medicare taxes is $63

The State unemployment tax is $28.56

The Federal unemployment tax is $6.72

Explanation:

a. To calculate the (1) total earnings, (2) total deductions, and (3) cash paid we would have to calculate the following formula:

1. Total earnings=(15*40)+((48-40)*15*2)

Total earnings=$840

2. Total deductions=(Federal Tax+United fund deduction+Social security tax+Medicare tax)

Total deductions=$200+$50+($840*6%)+($840*1.5%)

Total deductions=$313

3. Cash paid=Total earnings-Total deductions

Cash paid=$840-$313

Cash paid=$527

b. The calculation of each of the employer's payroll taxes related to the earnings of Ella Dodd for the week ended March 15 would be the following:

Social security and medicare taxes=$840*(6%+1.5%)

Social security and medicare taxes=$63

State unemployment tax=$840*3.4%

State unemployment tax=$28.56

Federal unemployment tax=$840*0.8%

Federal unemployment tax=$6.72

7 0

4 years ago

A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. Th

malfutka [58]

Answer:

$400

Explanation:

From the question, there is a butterfly spread when a trader buys 100 options with strike prices $60 and $70 and sells 200 options with strike price $65.

The maximum gain is the point where both the stock price and the middle strike price are equal, i.e. equal to $65. At that point, the options payoffs are respectively $500, 0, and 0. By implication, the total payoff is $500.

The set up cost of the butterfly spread can be calculated as follows:

Setup cost = ($11×100) + ($18×100) – ($14×200)

= 1,100 + 1,800 – 2,800

Setup cost = $100

Net gain = Options payoffs – Setup cost = $500 - $100 = $400

Therefore, the maximum net gain (after the cost of the options is taken into account) is $400.

3 0

4 years ago

The Tenth Amendment was added to the Constitution of 1787 largely because of the intellectual influence and personal persistence

Tems11 [23]

Good Morning!

The Tenth Amendment was added to the Constitution of 1787 largely because of the intellectual influence and personal persistence of the Anti-Federalists and their allies. It's quite clear that the Tenth Amendment was written to emphasize the limited nature of the powers delegated to the federal government.

Hope this helps!

~Courtney

3 0

3 years ago

Read 2 more answers