For each of the following scenarios, classify the type of spending (C,I,G,Xn), describe its impact on gross domestic product (increase, decrease, not impacted), and explain. A. A new airplane purchased by United Parcel Service.
B. The tuition you pay during your first year of college.
C. The social security check your grandmother receives.
D. A new purchase of 50,000 shares of Time/Warner stock.
E. A new pair of tennis shoes made in China and purchased by an American shoe store.

Answers

Answer 1
Answer:

Answer:

A. A new airplane purchased by United Parcel Service.

  • Investment (in fixed assets), GDP grows

B. The tuition you pay during your first year of college.

  • Consumption (of services), GDP grows

C. The social security check your grandmother receives.

  • Not included in GDP, social security checks are considered transfer payments.

D. A new purchase of 50,000 shares of Time/Warner stock.

  • Not included in GDP, only IPOs are included in GDP

E. A new pair of tennis shoes made in China and purchased by an American shoe store.

  • Import, GDP decreases since net exports decrease

Explanation:


Related Questions

Use the following information and the indirect method to calculate the net cash provided or used by operating activities: Net income $85,800 Depreciation expense 12,500 Gain on sale of land 8,000 Increase in merchandise inventory 2,550 Increase in accounts payable 6,650a. $37,400.b. $13,150.c. $94,400.d. $14,150.e. $29,400.
On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2017, Jacob Inc. sold the truck for $43,000. What amount of gain or loss should Jacob Inc. record on December 31, 2017? A. Gain, $22,000. B. Gain, $5,000. C. Loss, $3,000. D. Loss, $18,000.
What are 2 branches of classical viewpoint of management
Corporate limited liability mean corporate losses are limited to
Determining opportunity cost Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Store Travel Time Each Way Price of a Dress (Minutes) (Dollars per dress) Local Department Store 15 102 Across Town 30 87 Neighboring City 60 63 Juanita makes $58 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $58 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.Store Opportunity Cost of Time Price of a Suit Total Cost(Dollars) (Dollars per suit) (Dollars)Local Department Store 103 Across Town 88 Neighboring City 63 Assume that Juanita takes opportunity costs and the price of the suit into consideration when she shops. Juanita will minimize the cost of the suit if she buys it from the:______. .

Marv Company's direct labor costs for manufacturing its only product were as follows for October: Standard direct labor hours (DLHs) per unit of product 2 Budgeted finished units for the period 7,100 Actual number of finished units produced 5,700 Standard wage rate per direct labor hour (SP) $ 20.00 Direct labor costs incurred $ 234,000 Actual wage rate per direct labor hour (AP) $ 18.00 The direct labor efficiency variance for October, rounded to the nearest dollar, was: a. $32,000 unfavorable.

b. $20,600 favorable.

c. $26,000 favorable.

d. $3,200 unfavorable.

e. $52,600 unfavorable.

Answers

Answer:

a. $32,000 unfavorable

Explanation:

The computation of the direct labor efficiency variance for October is shown below:-

Direct labor efficiency variance = (Standard hours for actual production - Actual hrs) × Standard rate per hour

= (5,700 × 2 - $234,000 ÷ $18.00) × $20

= (11,400 - $13,000) × $20

= $1,600 × $20

= $32,000 unfavorable

Therefore for computing the direct labor efficiency variance for October we simply applied the above formula.

Place a checkmark next to each argument that supports abolishing the Federal Reserve Bank.The Fed increases inflation.

Changing the U.S. currency system could destabilize the economy.

The Federal Reserve helps stimulate economic growth during depressions and recessions.

The Fed worsens economic depressions.

Poor management by the Fed has led to two major financial crises in the U.S. in the last 100 years.

The Federal Reserve is best equipped to supervise large firms and banks.

A more independent financial market is generally healthier and more stable.

The Fed does not have the knowledge necessary to make good decisions about interest rates.

Answers

The Federal Reserve uses its policy tools to carry out monetary policy, which largely affects employment and inflation. Yet regardless of how it may sound, it usually comes down to changing the amount of money available in the market to produce a particular level of inflation.

How does the economy fare once the Fed raises interest rates?

The Fed increases interest rates to reduce aggregate demand and slow the flow of money through the economy. Higher interest rates will result in less demand for products and services, which should result in reduced prices for those things and services.

How does the Fed respond to rising inflation?

She warned before of the Fed meeting that it would continue to rapidly hike rates if inflation remained stubbornly high. According to this scenario, housing prices could increase to 8% or more in the latter part of 2022 and the beginning of 2023.

To know more about Federal Reserve Visit:

brainly.com/question/17097530

#SPJ1

Scarcity exists because: Multiple Choice individuals cannot solve the three central coordination problems. new wants continue to develop and willingness to meet them is limited. the supply of goods is always less than the demand. governments cannot solve the three central coordination problems.

Answers

Answer:

new wants continue to develop and willingness to meet them is limited.

Explanation:

In economics, scarcity refers to not being able to satisfy the total demand for goods and services. Everything is scarce, specially time (also capital, labor, technology), and economic agents must allocate resources that yield the highest benefits to them. The demand for goods and services is virtually unlimited, but if you can earn a higher profit from selling certain good X than selling good Y, you will sell good X and the consumers' demand for good Y will be unsatisfied.

Final answer:

Scarcity exists because human wants and needs are infinite, but the resources to fulfill these are finite. Our society constantly desires new and more goods, but our ability to produce these items is limited. This results in constant decision-making about what to produce, how to make it, and who will receive it.

Explanation:

Scarcity exists due to the second multiple choice option - new wants continue to develop, and the willingness or ability to meet them is limited. This is a foundational concept in economics explained by the fact that human wants and needs are infinite, but resources to fulfill these wants and needs are finite. This disparity between nearly limitless wants and the limited production capability results in scarcity.

Even as societal productivity improves, and we produce more goods and services, we continually desire more and newer products. Additionally, resources such as land, labor, and capital are not infinite. We always have to make decisions about what to produce, how to produce it, and who will get what is produced. Those are the three central coordination problems.

Learn more about Scarcity here:

brainly.com/question/34071923

#SPJ6

Discuss the customer’s role as a productive resource for the firm. Describe a time when you played this role. What did you do and how did you feel? Did the firm help you to perform your role effectively? How?

Answers

Answer:

A. Customers play important productive roles especially in the creation and delivery of some repeatable services. The roles a customer plays "as a productive resource for the firm" include:

1. The customers act as some partial employees in enhancing the productivity of the firm.

2. The customers contribute to the organization by supplying their valuable time, effort, ideas, and other resources.

3. Without customers playing productive roles, some services cannot be provided to them.  Sometimes, the customers actively serve themselves.  A typical example is at restaurants and other self-service firms.

4. Customers suggest valuable solutions to resolve some product and service problems.

B. At shopping malls, and even calling for the services of a plumber or electrician,the customer serves in many ways.  She pushes the trolley around to pick the goods she requires and afterward, pushes them to the cashier for payment.  She helps the plumber or electrician with repair materials or make suggestions on how to solve repair problems.

C. The customer sometimes feel that the plumber or electrician would mess up the repairs without their thoughtful input.

D. Some firms help the customer to perform this role as "a productive resource" when they provide serviceable trolleys for shopping or when they send in some respectful and competent repair people, who dress decently without oozing some offending odor.

 

Explanation:

It is only some discourteous firms that do not recognize that their customers play an important role as a productive resource.  For some service organizations, their services cannot be consummated without the active participation of the customer.  It is, therefore, imperative that firms help their customers to perform this role effectively and efficiently.

Final answer:

The customer can act as a productive resource for a firm through co-creation of value. This involves a customer actively participating through offering ideas, suggestions, and feedback, or even taking part in the production process. An example is participating in a customer survey for a restaurant, where the feedback provided helps shape the restaurant’s services and offerings.

Explanation:

In the context of a business, a customer can also act as a productive resource. This is often referred to as co-creation of value. It means that a customer could directly or indirectly be involved in the production process of the goods or services that they consume. This involvement could come in the form of ideas, suggestions, feedbacks, or active participation in the production process.

For instance, let’s say I once participated in a customer survey for a restaurant where I frequently dine. My feedback about their menu, services, and ambience shaped their decision-making process to some extent. This made me feel valued and part of the restaurant's growth and improvement, which is a positive feeling. The restaurant helped me to perform my role effectively by encouraging feedback, implementing suggestions, and communicating subsequent changes. This reciprocal relationship benefited both me as a customer and the restaurant as a business.

Learn more about Customer as a Productive Resource here:

brainly.com/question/33598866

#SPJ11

You sell short 600 shares of Microsoft that are currently selling at $25 per share. You post the 40% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $24? (Ignore any dividends.) Multiple Choice 10.00% 7.50% 17.50% 5.00%

Answers

Answer:

10.00%

Explanation:

Calculation for what will be your rate of return after 1 year if Microsoft is selling at $24

Using this formula

Rate of return = (Current price - Initial price ) /Current price *margin

Let plug in the formula

Rate of return=($25 per share-$24)/$25 per share*0.40

Rate of return=$1/10

Rate of return=0.1*100

Rate of return=10.00%

Therefore what will be your rate of return after 1 year if Microsoft is selling at $24 is 10.00%

Final answer:

In this short sale, the initial selling price of the shares was $15,000. A 40% margin was posted, amounting to $6,000. After the price dropped to $24 per share, the shares were bought back for $14,400. The profit gained, which is $600, is divided by the initial investment to obtain a rate of return of 10%.

Explanation:

In a short sale, the initial transaction involves selling a borrowed stock in the hopes of buying it back later at a lower price to earn a profit. The rate of return in a short sale is calculated using the profit earned from the short sale divided by the amount of capital invested originally.

First, we need to calculate how much the total value of the shares was at the time of selling short, so that’s 600 shares × $25/share = $15,000. You posted a 40% margin for the short sale, which means you committed $6,000 (40% of $15,000).

After one year, the Microsoft stock drops to $24 per share. At that price, you can buy back all 600 shares for 600 shares × $24/share = $14,400. The difference between the amount you sold the shares for and what you bought them back at is $15,000 - $14,400 = $600.

Now to calculate the rate of return, take the profit ($600) and divide by the amount of capital originally committed to the transaction ($6,000), so the rate of return is $600 / $6,000 = 0.10 or 10%.

Learn more about Short Selling here:

brainly.com/question/35076790

#SPJ3

What role should government play in a free market economy?

Answers

Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.

Answer: Stabilize the economy

Explanation: