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Alecsey [184]
2 years ago
3

Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction Cons

umption Investment Government Purchases Net Exports Your parents buy a bottle of French wine. Aunt Jane buys a new house from a local builder. You pay a domestic plumber for fixing a leak in your bathroom. Ford manufactures a Focus and sells it to Avis, the car rental company. Uncle Paul pays a domestic contractor for renovating his home. Ford sells a Mustang from its inventory to the Martinez family. Uncle John receives a check from the federal government for unemployment insurance benefits. Texas hires public middle school teachers.
Business
1 answer:
wel2 years ago
5 0

Answer:

the answers are below

Explanation:

1.Your parents buy a bottle of French wine.

Household Consumption would be affected. There would be a rise in household consumption but gdp will not be affected. Net exports would fall, the bottle is an imported good

2. Aunt Jane buys a new house from a local builder.

Investment would rise. Getting a house is an investment. So gdp would also rise.

3. You pay a domestic plumber for fixing a leak in your bathroom.

Consumption is affected

4. Ford manufactures a Focus and sells it to Avis, the car rental company.

Consumption would increase since it is selling to a rental company, investment would fall and gdp would be unaffected

5. Uncle Paul pays a domestic contractor for renovating his home.

Consumption is affected

6. Ford sells a Mustang from its inventory to the Martinez family.

Consumption would increase since it was bought by a household, ford would have a fall in investment since the car was an investment till it was sold. Gdp will not be affected

7. Uncle John receives a check from the federal government for unemployment insurance benefits.

Consumption would be affected and so also would government purchases

8.Texas hires public middle school teachers.

Government purchases would be affected and so also would investment since education is an investment in the future

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In a(n) ________, members eliminate internal trade barriers, adopt a common external policy toward nonmembers, and eliminate bar
JulijaS [17]

Answer:

A Common Market

Explanation:

A Common Market is the one where a group is created or established by countries within the area of geographical in order to encourage the duty free trade as well as the free labor movement and also the capital among the members. In the market, it imposes a common external tariff on the imports.

So, in this market, members eliminate the barriers of trade and adopt or follow the common policy.

7 0
2 years ago
You are hired as a consultant to decide if your client should purchase a new, highly specialized piece of equipment. The product
igor_vitrenko [27]

Answer:

Given:

Demand = 15,000

Initial investment = $256,000

Variable cost = $15

Selling price = $30

Here, we'll first compute break-even quantity :

i.e. Initial \: investment + variable \: cost \times Quantity_{break\:even} = Quantity_{break\:even} \times selling price

256,000 + 15 \times Quantity_{break\:even} = Quantity_{break\:even} \times 30

Quantity_{break\:even} = 17,067 units

From above we can state that the demand is less than break-even quantity i.e. in this case the organization will not be able to recover the investment made.

<u><em>Therefore, the company's total margin will be less than its investment.  </em></u>

<u><em>The correct option is (b)</em></u>

5 0
2 years ago
Waterways packages some of its products into sets for home installations. One set (small) sells for $77 with variable costs of p
horrorfan [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

One set (small) sells for $77 with variable costs of production for the set at $50. Another set (large) sells for $152 with variable costs of $100.

Contribution margin= selling price - unitary variable cost

Contribution margin Small Set= 77 - 50= $27 per unit.

Contribution margin Large Set= 152 - 100= $52 per unit.

4 0
2 years ago
You are a finance intern at Chambers and Sons and they have asked you to help estimate the company's cost of common equity. You
Nesterboy [21]

Answer:

Cost of equity, re= 0.098356 or 9.84 %

Explanation:

D1 = $ 1.25

P0 = $ 27.50

gL = 5 % = 0.05

F = 6 % = 0.06

Cost of equity, re can be calculated using the formular below:

Cost of equity, re = D1/ {P0 x (1- F)} + gL

                             = $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05

                             = $ 1.25 / ($ 27.50 x 0.94) + 0.05

                             = $ 1.25 / 25.85 + 0.05

                           = 0.048356 + 0.05

Cost of equity, re= 0.098356 or 9.84 %

8 0
2 years ago
Provide an argument of why an organization should design and implement a Benefits Plan that complements its overall corporate vi
Katyanochek1 [597]

Explanation:

A corporate benefits plan is used as a relevant tool for the company to prepare for business and organize itself more strategically in the market.

For example, an employee benefit plan can offer several additional advantages that justify the company's mission and values ​​of exercising corporate governance that prioritize the well-being of its employees. By offering advantages such as a health plan, the company consequently increases the incentive to work, motivates employees and becomes an attractive strategy for attracting good professionals in the market.

8 0
2 years ago
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