"In the economy of Wrexington in 2008, consumption was $5000, exports were $100, government purchases were $900, imports were $200, and investment was $1000. What was Wrexington’s GDP in 2008?"

Answers

Answer 1

Answer:

Answer:

The GDP in 2008 was $6800

Explanation:

The GDP or Gross Dividend Product of the country is the total value of the economic activity or the value of goods and services produced in an economy within a country in a certain year.

The formula to calculate the GDP = C + I + G + ( X - M )

Where,

C is the consumption
I is the Investment
G is the government spending
X is the value of exports
M is the calue of imports

Thus, GDP = 5000 + 1000 + 900 + ( 100 - 200)

GDP = $6800

Related Questions

Which of the following situations is NOT asegregation of duties violation?a.The treasurer has the authority to signchecks but gives the signature block tothe assistant treasurer to run the check-signing machine.b.The warehouse clerk, who has custodialresponsibility over inventory in thewarehouse, selects the vendor andauthorizes purchases when inventoriesare low.c.The sales manager has the responsibilityto approve credit and the authority towrite off accounts.d.The department time clerk is given theundistributed payroll checks to mail toabsent employees.e.The accounting clerk who shares therecord-keeping responsibility for theaccounts receivable subsidiary ledgerperforms the monthly reconciliation ofthe subsidiary ledger and the controlaccounts
While Mary Corens was a student at the University of Tennessee, she borrowed $8,000 in student loans at an annual interest rate of 9%. If Mary repays $1,600 per year, then how long (to the nearest year) will it take her to repay the loan? Do not round intermediate calculations. Round your answer to the nearest whole number.
Which of the following is a disadvantage of government provision of a public good? A. The private sector can provide all public goods at a lower cost. B. The government does not provide enough of any public good. C. The government lacks information about what people are willing to pay for the good. D. None of the above is a disadvantage.
Maddy purchases 2 pounds of beans and 3 pounds of rice per month when the price of beans is S2 per pound. She purchases 1 pounds of beans and 4 pounds of rice per month when the price of beans is $3 per pound. Maddy's cross- price elasticity of demand for beans and rice is A. -0.71, and they are complements B. 0.71, and they are substitutes. C. 1.4, and they are substitutes D. -1.4, and they are complements
Nancy is considering whether her toy manufacturing business should develop its own brand. Which is a company reward Nancy can expect from branding?

Apple Valley Corporation uses a job cost system and has two production departments, A and B. Budgeted manufacturing costs for the year are: Department A Department B
Direct materials $800,000 $120,000
Direct manufacturing labor $200,000 $200,000
Manufacturing overhead $400,000 $500,000

The actual material and labor costs charged to Job #432 were as follows:

Total
Direct materials: $21,000
Direct labor:
Department A $11,000
Department B $7,000
$18,000

Apple Valley applies manufacturing overhead costs to jobs on the basis of direct manufacturing labor cost using departmental rates determined at the beginning of the year.

For Department A, the manufacturing overhead allocation rate is: _________
For Department B, the manufacturing overhead allocation rate is: _________
Manufacturing overhead costs allocated to Job #432 total: _________

Answers

Answer:

See below

Explanation:

1. manufacturing overhead allocation rate for department A

= (Manufacturing overhead department A/Manufacturing direct labor department A) × 100

= ($400,000/$200,000) × 100

= 200%

2. Overhead allocation rate for department B

= ($500,000/$200,000) × 100

= 250%

3. Manufacturing overhead cost allocated to job #432.

($11,000 × $400,000)/$200,000 + ($7,000 × $500,000)/$200,000

= $22,000 + $17,500

= $39,500

JB Instruments is analyzing a proposed project. The company expects to sell 1,600 units, ±3 percent. The expected variable cost per unit is $220 and the expected fixed costs are $438,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?

Answers

Answer:

$984,061.12

Explanation:

The computation of sales revenue under the worst-case scenario is shown below:-

Sales revenue under the worst-case scenario = Quantity sold × Price

= (1,600 - 1,600 × 3%) × ($647 - $647 × 2%)

= (1,600 - 48) × ($647 - 12.94)

= 1,552 × 634.06

= $984,061.12

Therefore for computing the sales revenue under the worst-case scenario we simply applied the above formula.

Financial institutions in the U.S. economySuppose Nick would like to invest $10,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose TouchTech, a hand-held computing firm, is selling stocks to raise money for a new lab—a practice known as---------(debt/equity)------ finance. Buying a share of TouchTech stock would give Nick-----(a claim to partial ownership in/an IOU, a promise to pay, from)------- the firm. In the event that TouchTech runs into financial difficulty, --------(nick and the other stockholders/ the bondholders)------will be paid first.
Suppose Nick decides to buy 100 shares of TouchTech stock.
Which of the following statements are correct? Check all that apply.

----Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Nick's shares to decline.
----The Dow Jones Industrial Average is an example of a stock exchange where he can purchase TouchTech stock.
----An increase in the perceived profitability of TouchTech will likely cause the value of Nick's shares to rise.

Alternatively, Nick could invest by purchasing bonds issued by the government of Japan.

Assuming that everything else is equal, a bond issued by a government that is engaged in a civil war most likely pays a ----(higher/lower)---- interest rate than a bond issued by the government of Japan.

Answers

Answer:

(1) A practice known as "equity" finance

(2) Busing a share of TouchTech stock would give Nick "a claim to partial ownership"

(3) "the bondholders" will be paid first"

(4) Of the three statements provided, statement # 1 and statement # 3 are correct

(5) A government that is engaged in civil war mist likely pays a "higher" interest rate

Explanation:

Lets look at the answer to each question individually below:

(1) Touch Tech is selling stocks to raise money. The process involves issuing common shares through investment banks in a primary market to raise capital. The firm is essentially selling pieces of itself to investors, or "shareholders" which is known as equity finance

(2) The firm sells a part of itself to the investors who buy stocks and shares in the company. This means that essentially the company is selling ownership up to a certain amount. This gives the shareholders rights to residual income of the company. So each shareholders is a part owner and their individual ownership depends on the percentage of shares that they hold relative to the total shares outstanding.

(3) Shareholders by definition have a claim on the residual income/cashflows of the company. This is income that has been derived after paying for operating activities, other expenses, interest payments, and tax payments. Bondholders are debt holders of a company and in terms of seniority of claim, the debt holders are paid off first. The shareholders come at the very bottom of the hierarchy in terms of getting paid compared to debt holders, the government, and preference shareholders.

(4) Expectation of a recession would mean a company finds it hard to achieve sales and therefore impacts the profitability. If the profitability is impacted negatively, shareholders would get a lower rate of return on their investment which would push down the demand for share, and this is why the price of the shares would likely decline. Similarly, if investors believe the Touch Tech will be able to earn good sales figures and good profitability, the rate of return on investment would be expected to be higher. Therefore, in this case, the increased demand for shared would drive up the price of the shares as well. Therefore both these statements are true,

On the other hand, the Dow Jones Industrial Average is NOT a stock exchange. An example of a stock exchange is the NYSE (New York Stock Exchange) where investors can buy and sale shares. This is the exchange where Nick can buy the shares. The DJIA is simply an index that indicates how the prices of a select number of stocks from across the board are moving. The level at which the DJIA is at gives investors and idea as to how the overall market is performing rather than looking at the share price and volume trades of each individual stock.

(5) A war torn government issuing bonds would be perceived by investors as having difficulties in pay back its debts. Tax collections and economic performance of the country would be deeply impacted by the civil war. This would make the risk of not getting paid back a lot higher for a bondholder than a government that is stable and plenty of cash reserves. To compensate for this added risk, the government of a war torn state would have to offer investors a higher rate of return in exchange for their investment.

Many people have argued that the skills needed to be successful in today's workforce have changed. What skills do you feel an individual needs to be successful in a job today? Why do you feel these skills are most important? In an essay to be read by your instructor, identify the skills you feel are most needed by an individual to be successful at work and provide reasons to persuade your instructor that these are the most critical skills for success.

Answers

Technical skills are really essential. But upon technical skill, soft skills are mandatory to have a successful career.

Explanation:

Communication: The most important to covey from low level to high level and vice-versa.

Leadership skill: The see the growth visibly. An essential skill for both employer and employee.

Crisis management: Employee should possess this skill to handle challenging situation

Negotiation: Which is really important both for work life and personal life. This is required in all the levels of hierarchy.

Collaboration: Required to work as a team

Problem-solving: The skill which would be tested in various interviews in all the levels.

Suppose you have $10,000 in your checking account. You withdraw $500 cash from your account and hide it under your pillow for future use. If the required reserve ratio is 10%, what will be the maximum impact on money supply today as a result of your action?

Answers

Answer:

The Money supply will decrease by $4,500

Explanation:

What will be the maximum impact on money supply today as a result of your action is that the Money supply will decrease by $4,500.

Since we assumed that you have $10,000 in your account in which you withdraw $500 cash from your account and hide it under your pillow for future use, therefore based this scenario or actions carried by you it means that your bank have fewer or lesser funds available to make loans which means the decrease will tend to affect the money supply.

Hence, you can easily calculate the effect by using the simple money multiplier.

Megan Brink is offered the possibility of investing $6,651 today at 6% interest per year in a desire to accumulate $10,000. How many years must Brink wait to accumulate $10,000