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2 years ago

Activities included (and not included) in the calculation of GDP

Business

1 answer:

Dahasolnce [82]2 years ago

7 0

Answer:

Gross Domestic Product

Activities included and excluded:

1. The gross domestic product (GDP ) of the United States is defined as the monetary value of all finished goods and services in a given period of time. The important thing to note here is that GDP is the market value of all final goods and services produced within a country in a given period of time. This means that intermediate goods are not included.

2. Indication of Inclusion or Exclusion in 2018 GDP:

a) Calculo = excluded

b) Rotato = included

c) An accountant = excluded because of year, 2019

d) Fastline = included

e) Awake = included

Explanation:

1) The importation of the calculator into the United States does not form part of domestic production, and as such will be excluded.

2) Rotato's production on September 25, 2018 will be included, with an exclusive focus on whether the production of the set of tires increases GDP directly.

3) The accountant's work would have been included if it were done in 2018.

4) Fastlane's production will be included.

5) Awake's production will be included.

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Bob,s candle factory is considering three different manufacturing options. Option A uses hand labor with fixed costs of $10,000

sergeinik [125]

Answer:

a. If demand for Bob's candles is 2500, which option should he pick?

OPTION A

and what is the cost?

$16,875

b. If demand for Bob's candles is 4500 which option should he $19,950

OPTION B

and what is the cost?

$19,950

Explanation:

Option A uses hand labor with fixed costs of $10,000 and variable costs of $2.75/candle.

Option B uses a combination of hand and automation with fixed costs of $15,000 and variable costs of $1.10/candle.

Option C is highly automated with fixed costs of $20,000 and variable costs of $0.75/candle.

demand = 2,500 units

option A = $10,000 + ($2.75 x 2,500) = $16,875

option B = $15,000 + ($1.10 x 2,500) = $17,750

option C = $20,000 + ($0.75 x 2,500) = $21,875

demand = 4,500 units

option A = $10,000 + ($2.75 x 4,500) = $22,375

option B = $15,000 + ($1.10 x 4,500) = $19,950

option C = $20,000 + ($0.75 x 4,500) = $23,375

3 0

1 year ago

Some 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Ava

OLga [1]

Complete Question:

Read the news clip, then answer the following question A Bakery on the Rise Avalon's decision to -is a long-run decision. O A. move to a larger space Up to 500 customers a day line up to buy Avalon's breads, scones, muffins, and coffee. Staffing and management are worries. Avalon now employs 35 and plans to hire 15 more. Its payroll will climb by 30 percent to 40 percent. The new CEO has executed an ambitious agenda that includes the move to a larger space, which will increase the rent from $3,500 to $10,000 a month Source: CNN, March 24, 2008

Avalon's decision to __________ is a long run decision.

A. Move to Larger Space

B. Hire 15 more employees

Answer:

Option A. Move to Larger Space

Explanation:

The decision that alters only a single variable factor is considered as a short run decision. Labor, electricity usage, increased production are examples of variable factors. This means that increase in employees is a short run decision.

On the other hand, decision to increase or decrease the fixed factors are considered as long run decision because it is difficult to alter the decision and if we do so, then we will encounter heavy losses for a long period of time. Long run decision includes selling or purchasing or leasing of property, plant and equipment are considered as fixed factors.

In this case, Avalon is considering to move to a larger space which will result in significant increae in fixed cost. Hence it is fixed factor and is long run decision. Hence Option A is correct here.

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1 year ago

Chuck Olson, age 16, buys a used car from Bobby Duncan Used Cars Center on September 15, 2006. Olson agrees to pay $200 a month

lukranit [14]

Answer:

Olson can successfully press charges and force Duncan to take care of the damages caused to the car ( D )

Explanation:

Chuck Olson age 16 ( a minor ) can successfully press charges and request/force Bobby Duncan used cars center to take care of the damages caused to the car. this is because according to traditional common laws a contract entered by a minor is considered null and void hence Olson can successfully disaffirm the contract and Bobby Duncan would have to accept the damages and take care of them.

A minor is not required by traditional common law to entered into any form of obligatory contract.

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1 year ago

Suppose Orange Inc. sells MP3 players and initially has monopoly power because there are only a few close substitutes available

blsea [12.9K]

Answer:

More Elastic ; Lerner Index Decline

Explanation:

Elasticity denotes the responsive change in a product's demand, due to change in its price. Higher the elasticity, the more quantity change due to price change, vice versa.

Lerner Index depicts the market power a firm has. Higher elasticity means consumers have many close alternatives & L is small, signify less market power. And, Vice versa case for low L.

Orange Inc players has monopoly i.e sole seller privileges in the MP3 players market, with few close substitutes. As, more types of players are introduced in the market :

Orange Inc has more competitors & close substitute goods providers, now in the market. So, increase in substitute availability will increase the Elasticity of Orange' demand
Increase in Elasticity means implies that consumers have many options, market power of Orange & its representative L index falls.

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2 years ago

. Tiger Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that origi

klasskru [66]

Answer: $1,200,000

Explanation:

The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.

This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.

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2 years ago