Answer: Sold
Explanation:
The Matching principle in accounting states that for an expense to be recognized in a period, the revenue to which that expense is attached should be earned in that same period as well.
For product costs to be recognized as expenses therefore, the products they are attached to must yield revenue by being sold.
Some argue that Sweden's generous welfare benefits, which pay people who lose their jobs as much as 80 percent of previous incomes for three years, has resulted in too-high unemployment. This can be seen as an example of:
Answer:
Government failure in fostering a competitive market environment.
Explanation:
Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;
I. Cyclical unemployment rate (CU).
II. Frictional unemployment rate (FU).
III. Structural unemployment rate (SU).
IV. Actual unemployment rate (AU).
V. Natural Rate of Unemployment (NU).
Some argue that Sweden's generous welfare benefits, which pay people who lose their jobs as much as 80 percent of previous incomes for three years, has resulted in too-high unemployment. This can be seen as an example of government failure in fostering a competitive market environment.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Hence, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Brothern Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the most recently completed year appear below: Estimates made at the beginning of the year: Estimated machine-hours 34,200 Estimated variable manufacturing overhead $ 6.21 per machine-hour Estimated total fixed manufacturing overhead $ 1,006,164 Actual machine-hours for the year 32,000 The predetermined overhead rate for the recently completed year was closest to:
Answer:
$35.63
Explanation:
The formula for predetermined overhead ate is
= Predetermined fixed overhead rate ÷ Predetermined variable overhead rate
Where;
Predetermined fixed overhead rate = (Fixed overhead cost ÷ Estimated direct labor)
= $1,006,164 ÷ 34,200
= $29.42
But the predetermined variable overhead is $6.21 per machine hour
Therefore, the predetermined overhead rate is
= $29.42 + $6.21
= $35.63
The ability to use the available limited resources in the most effective, streamlined way is known as __________.
Answer:
Efficiency
Explanation:
In economics, it is commonly known that human wants are unlimited but the resources to satisfy these wants are limited.
The term efficiency is used to allocate available limited resources in the most effective streamlined ways by cutting unnecessary waste. Efficiency creates least production cost, maximum production output and surplus from the market.
Efficiency reduces or cut waste of resources like energy , physical materials, time etc whereas the desired production output is met.
how do you decide whether the company should employ aggressive capital investments in global business areas
Answer:
One key managerial tool that can help decide whether or not a company should employ aggressive capital investments in global business areas is capital budgeting.
Capital budgeting is a quantitative evaluation of the opportunities within a business space and helps management to decide based on the most acceptable trade-off between returns on investment and risk, which opportunity is worth taking a shot at.
Explanation:
Availability of Capital: Capital budgeting assumes that there is enough capital in the first place.
Payback Period: This is a budgeting technique that measures the time taken to recover the initial capital outlay into a business. Some investment have long payback periods other short payback time frame. A short payback period is generally more acceptable than a medium-term or longer-term payback. However, none of the payback period frames are in themselves good or bad. They become acceptable or not when compared to other factors. For example, in a business space or industry where there is a very high barrier to entry such as a patent protecting competition from replicating a similar product, a long-term payback becomes acceptable as long as it fall within the patent period.
There are so many other capital budgeting related factors that help the investor company decide how aggressive it should go. They are:
Internal Rate of ReturnProfitability IndexNet Present Value etcRisks: Given that the company is playing in the global business arena, knowledge about global risks and in-country specific risks are very strong determinants about whether or not the company can go aggressive.
If the financial feasibility is high and the risk is very high, the company may excercise restraint.
If the risks are very low, the company may go aggressive.
Detailed Business Plan: It is a very good practice to have a detailed business plan for investing in certain areas.
One key component of the business plan other than those already discussed is the Human Capital component.
If the risk of the investment if admissible and the financial feasibility checks out, there has to be adequate availability of human capital to manage the investments.
Regardless of how big the company is, I would thread carefully if we don't have tested and trusted hands at the executive level to oversee capital investments.
Cheers
Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2021 for $1,000,000. During 2021, Doane earned $400,000 and paid dividends of $250,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. During 2022, Doane earned $500,000 and paid cash dividends of $150,000 on April 1 and $150,000 on October 1. On July 1, 2022, Rich sold half of its stock in Doane for $660,000 cash. What should the gain be on sale of this investment in Rich's 2022 income statement
Answer:
$122,500
Explanation:
Calculation for What should the gain be on sale of this investment in Rich's 2022 income statement
Gain on sales of investement=$660,000-[$1,045,000 – ($150,000 × 30%) + ($500,000 × 50% × 30%)/2]
Gain on sales of investement=$660,000-[($1,045,000 – $45,000 + $75,000)/2]
Gain on sales of investement=$660,000 – ($1,075,000 ÷ 2)
Gain on sales of investement=$660,000 – $537,500
Gain on sales of investement= $122,500
Therefore what should the gain be on sale of this investment in Rich's 2022 income statement is $122,500
Donata Company purchased equipment for $30,000 in December 20x1. The equipment is expected to generate $10,000 per year of additional revenue and incur $2,000 per year of additional cash expenses, beginning in 20x2. Under MACRS, depreciation in 20x2 will be $3,000. If the firm's income tax rate is 40%, the after-tax cash flow in 20x2 would be: $6,000. $3,600. $3,200. $4,800. None of the answers is correct.
Answer:
$6,000
Explanation:
The cash flow of a company is different from the net income of the company because net income includes some non-cash items like depreciation etc., which should be adjusted to calculate the cash flow of the company. The depreciation is added back to the net income in order to adjust this non-cash expense in the net income to arrive at cash flow for the period.
First, we need to calculate the net income as follow
Additional Revenue _________ $10,000
Less: Additional Cash expenses $2,000
Less: Depreciation ___________$3,000
Income Before tax ___________ $5,000
Less: Tax 40% ( $5,000 x 40% ) _ $2,000
Net Income _________________$3,000
Now We need to calculate the cash fow as follow
Cash Flow in 20x2 = Net income of 20x2 + Depreciation
Cash Flow in 20x2 = $3,000 + $3,000
Cash Flow in 20x2 = $6,000
Morgan is 65 years old and single. He supports his father, who is 90 years old, blind, and has no income. What is Arthur's standard deduction
Answer:
The standard deduction for 2020 for a head of household is $18,650. But if the filer is 65 years old or older, then he/she receives an additional $1,650. Morgan's total standard deduction is $20,300.
Explanation:
Morgan can claim his father as a dependent, and therefore, qualify as head of household.
Arthur's standard deduction will be :
Additional sum of money will be added to Arthur's standard deduction.
Arthur's standard deduction will be the Additional sum of money will be added to Arthur's standard deduction.The taxable income of any taxpayer gets an additional amount added to the tax money that reduces the amount, this is called as the standard deduction. For any taxpayers whose age is 65 or even older can acquire the benefit of additional amount that gets added to their standard deduction.Learn more :
https://brainly.com/question/13073942?referrer=searchResults
g Operating activities: Multiple Choice Are the means organizations use to pay for resources like land, buildings and equipment. Involve using resources to research, develop, purchase, produce, distribute and market products and services. Involve acquiring and disposing of resources that a business uses to acquire and sell its products or services. Are also called asset management. Are also called strategic management.
Answer:
Involve using resources to research, develop, purchase, produce, distribute and market products and services
Explanation:
Operating activities are a business's main activities. These activities ranges from manufacturing, marketing and then the selling of product/service.
They are the daily activities of a company that is engaged in production and sales of its product, revenue generation.
It is very important because it gives cash flow information as it relates to the every day operation of the business and from this the viability of the business can be seen.
In a market with an upward sloping supply curve and a downward sloping demand curve, when the actual price must be higher than the equilibrium price, there will be:
Answer:
excess supply
Explanation:
If price is higher than equilibrium price, quantity demanded would fall while quantity supplied would increase. This is in line with the law of demand and supply
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
This accounts for why the supply curve is positively sloped.
The Walden Manufacturing Corp. has interest expense of $4,000, factory supplies of $1,000, indirect labor of $6,000, direct materials of $16,000, advertising expense of $2,500, office expense of $14,000, and direct labor of $20,000. What is the total period cost
Answer:
$20,500
Explanation:
A cost that does not form a section or part of the manufacturing process is called period cost.
Period cost is therefore;
= Interest expense + Advertising expense + Office expense.
Given the above information,
Total period cost = $4,000 + $2,500 + $14,000
Total period cost = $20,500
If the absolute price of good X is $10 and the absolute price of good Y is $14, the relative price of good X in terms of good Y is
Answer: 1X = 5/7Y
Explanation:
Relative price is the price of a particular good when such good is being compared with another good. The relative price of good X in terms of good Y will be:
= Absolute price of X / Absolute price of Y
= 10/14
= 5/7
Therefore, 1X = 5/7Y
If the firm sells its product at the market price of $10 per unit, how many workers should the firm employ to maximize profit if the wage rate is $55
Answer:
the data regarding output and the quantity of labor is missing, so I looked for a similar question and found the attached image.
if one employee is hired, total production = $80, and total cost = $55
if two employees are hired, total production = $150, and total cost = $110
if three employees are hired, total production = $210, and total cost = $165
if four employees are hired, total production = $260, and total cost = $260
hiring four employees should maximize profits since MC = MR
By Nike changing the technology in their shoe, they are taking on a role of being more socially responsible. What type of business practice is Nike partaking in as they incorporate doing well by doing good into their business model
Explanation:
In this case, Nike is incorporating corporate governance into its business model, which is defined as a model for managing companies using the best market practices, using transparency, equity and social and environmental responsibility as essential parameters.
Companies today are no longer perceived by society as merely profitable entities, it is a social demand that companies assist in the development of society and minimize their impacts on the environment.
When companies develop programs to support society and sustainability, it guarantees the advantages of being better positioned in the market, attracting more investors, adding more value to its products and services and gaining a strategic and competitive advantage in the market.
, Inc., purchased inventory costing and sold % of the goods for . All purchases and sales were on account. later collected % of the accounts receivable. 1. Journalize these transactions for , which uses the perpetual inventory system. 2. For these transactions, show what will report for inventory, revenues, and expenses on its financial statements at the end of the month. Report gross profit on the appropriate statement. 1. Journalize these transactions for , which uses the perpetual inventory system.
Answer:
1a. Dr Inventory 160,000
Cr Accounts Payable 160,000
1b. Dr Accounts Receivable 188,000
Cr Sales Revenue 188,000
1c. Dr Cost of Goods Sold 128,000
Cr Inventory 128,000
1d. Dr Cash 56,400
Cr Accounts Receivable 56,400
2a. $32,000
2b. $60,000
Explanation:
1. Preparation of Journal entry using the perpetual inventory system
a. Preparation of the journal entry to record the purchase of inventory.
Dr Inventory 160,000
Cr Accounts Payable 160,000
b. Preparation of the journal entry to the sale
Dr Accounts Receivable 188,000
Cr Sales Revenue 188,000
c. Preparation of the journal entry to Record the cost of goods sold portion of the sale.
Dr Cost of Goods Sold 128,000
Cr Inventory 128,000
(80%*160,000)
d. Preparation of the journal entry to Record the collection of 30% of the accounts receivable.
Dr Cash 56,400
Cr Accounts Receivable 56,400
(30%*188,000)
2. Calculation for what Marcy will report for inventory, revenues, and expenses on its financial statements at the end of the month and to Report gross profit on the appropriate statement
2a. Calculation to Determine what the company will report on the balance sheet:
BALANCE SHEET
Current assets:
Inventory $32,000
[160,000-(80%*160,000)]
2b.Calculation to Determine what the company will report on the income statement:
INCOME STATEMENT
Sales revenue 188,000
Cost of goods sold (128,000)
(80%*160,000)
Gross profit $60,000
(188,000-128,000)
Since 2009, with the release of IFRS 9, which covers the classification/ measurement of financial assets, which is also known as phase I of the replacement of IAS, the IASB is seeking to move the valuation of financial instruments closer to:
Answer:
Amortized Value
Explanation:
On 12 November 2009, IFRS 9 which deals with Financial Instruments was issued, covering Classification and Measurement of financial assets. This replaced IAS 39 : Financial Instrument Recognition and Measurement.
The new standard, IFRS 9 divides all financial instruments that are currently within the scope of IAS 39 into two classifications which are (1) those measured at amortized cost and (2) those measured at fair value.
Therefore, the IASB is seeking to move the valuation of financial instruments closer to Amortized Value.
Sheridan Company owns equipment that cost $963,000 and has accumulated depreciation of $406,600. The expected future net cash flows from the use of the asset are expected to be $535,000. The fair value of the equipment is $428,000.
Required:
Prepare the journal entry, if any, to record the impairment loss.
Answer:
Debit : Impairment loss $21,400
Credit : Accumulated impairment loss $21,400
Explanation:
An Asset is impaired when its Carrying Amount > Recoverable Amount
where,
Carrying Amount = Cost - Accumulated depreciation
therefore,
Carrying Amount = $963,000 - $406,600 = $556,400
and
Recoverable Amount is the higher of
1. Value in use = $535,000
2. Fair Value less cost to sell $428,000
therefore,
Recoverable Amount is $535,000
Conclusion :
Since, Carrying Amount ($556,400) > Recoverable Amount ($535,000), the asset is impaired.
Impairment loss = $21,400 ($556,400 - $535,000).
Your friend, Caitlyn, does not think it is important to review her monthly credit card statement. Instead, she just sets up an automatic minimum payment on the 18th of each month. Convince Caitlyn that this is a bad idea.
Answer: This is a bad idea to set up a automatic minimum payment on the 18 of this month because it can be fraud risk, pricing disparities, minimum payment that is terrible. And in a cause to that, she has to pay extra, has to silly small fees, and picking the same day every month but will change due dates.
I will convince Caitlyn that this is a bad idea because the automatic minimum payment might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,
The automatic minimum payment in this context means the automatic (standard) repayment plan of the loan borrowed.
Majority of borrowers are placed on the standard repayment plan because it is automatic.
However, the standard repayment plan might not be favorable because it will create a backlog if repayment are not done as it is suppose to be paid,
Read more about repayment plan
brainly.com/question/24866449
Do you think GDP is the best indicator to measure the living standard of a country? Justify your answer (4 marks)
Explanation:
GDP is an indicator of a society's standard of living, but it is only a rough indicator because it does not directly account for leisure, environmental quality, levels of health and education, activities conducted outside the market, changes in inequality of income, increases in variety, increases in technology,
GDP is an accurate indicator of the size of an economy and the GDP growth rate is probably the single best indicator of economic growth, while GDP per capita has a close correlation with the trend in living standards over time.
Lands' End orders blazers that it has been selling for the last 20 years in misses sizes, but in a new fabric and in new larger woman's sizes. This would more than likely be an example of a:
Answer:
New buy
Explanation:
Based on the information given NEW BUY occur in a situation where a person or an individual order a brand new products that has already been selling for a long period of time in which the new product that is been ordered must be different from the one that was already in existence before now and the new products will have to be produce with a new material which will as well include brand new different design as well a different size just as in the case of Lands' End .
Therefore This would more than likely be an example of a: NEW BUY
The Affordable Care Act authorizes a number of payment reform demonstrations. Group of answer choices True False
Answer: True
Explanation:
The Affordable Care Act was signed into law in 2010 and it is simply a reform in the healthcare sector and it had to do with the policies that will enable Americans without insurance to enjoy insurance coverage.
The statement that The Affordable Care Act authorizes a number of payment reform demonstrations is true.
Philosophers of ethics often contend that the argument that codes should provide action recipes for all situations neglects the fact that: Select one: a. effective moral action requires more than just blind obedience to rules. b. most codes are created to establish clearly and forcefully an organization's standards. c. codes help a community to articulate and understand their highest shared values. d. codes empower and protect those who are committed to doing the right thing.
Answer:
d. codes empower and protect those who are committed to doing the right thing
Explanation:
The ethics philosophers contend that code provides the action for all types of situation neglects that the codes empower and protect them that are engaged for doing the right thing here right thing means the things should be done in an ethical way and in correct way
So as per the given situation the option d is correct
And, the rest of the options are wrong
Jack Corporation purchased a 22% interest in Jill Corporation for $1,640,000 on January 1, 2018. Jack can significantly influence Jill. On December 10, 2018, Jill declared and paid $1.7 million in dividends. Jill reported a net loss of $4.2 million for the year. What amount of loss should Jack report in its income statement for 2018 relative to its investment in Jill
Answer:
the loss reported in its income statement is $924,000
Explanation:
The computation of the loss reported in its income statement is as follows;
= Loss reported by Jill × percentage of purchased interest of jack in Jill
= $4,200,000 × 22%
= $924,000
Hence, the loss reported in its income statement is $924,000
The same is considered and relevant too
This activity is important because marketing managers must discover what prospective customers need and want. Marketing managersuse this knowledge to create products and services for their various target markets. Different marketing mixes are then developed toserve the unique needs or the firm’s target markets.
The goal of this exercise is to demonstrate your understanding of how a marketing manager might use the marketing mix to create valuefor two distinct car rental service segments. The first is the business traveler segment (customers traveling primarily for business), andthe second is the leisure traveler segment (customers traveling primarily for leisure or relaxation)
a. Luxury Cars
b. SUV/Minivan
c. Free Car seat
d. Gold Club
e. Airport Hubs
f. Premium
g. Park Access
h. Saver
Decide which marketing mix element it represents and which segment it reaches.
Marketing Mix Element: Business traveler segment Leisure traveler segment
Product Strategy
Price Strategy
Promotion Strategy
Place Strategy
Answer:
Note: See table attached to question below to fully understand
Marketing mix Business traveller Luxury traveller
element segment segment
Product strategy Luxury car SUV or Minivan
Price strategy Premium Saver
Promotion strategy Gold club Free car seat
Place strategy Airport hubs Park access
At December 31, 2011 the accounting records of Gordon, Inc. contain the following items: If the Notes Payable is $10,000, the December 31, 2011 cash balance is:
The question is incomplete. The complete question is as follows,
At December 31, 2011 the accounting records of Gordon, Inc. contain the following items:
Accounts Payable 2500
Land 30000
Building 31250
Notes Payable ?
Retained earnings 125000
Accounts Receivable 18750
Cash ?
Equipment 40000
Capital Stock 12500
If the Notes Payable is $10,000, the December 31, 2011 cash balance is:
Answer:
Cash = $30000
Explanation:
The accounting equation states that the sum of total assets is always equal to the sum of total liabilities plus total equity. We can state the equation as follows,
Total Assets = Total Liabilities + Total Equity
So,
(30000 + 31250 + 18750 + 40000 + Cash) = (2500 + 10000) + (125000 + 12500)
120000 + Cash = 12500 + 137500
Cash = 150000 - 120000
Cash = $30000
True) or (False)? The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.
Answer:
The monetary unit principle is the broad principle that requires identifying the activities of a business with specific time periods such as months, quarters, or years.
False.
Explanation:
This accounting assumption is based on the use of money as a unit of measurement. The monetary unit principle assumes that all transactions or economic events recorded in the accounts of an entity can be expressed and measured in monetary terms or currency, like the dollar. The principle ascribes some stability and trust in the monetary units. What is actually described above is the periodicity concept.
Re-engineering a software system has two key advantages over more radical approaches to system evolution: Select one: a. Reduced Risk and Reduced Cost b. No Risk and Low cost c. Risk Free and Cost effective d. None of the above
Answer:
a. Reduced Risk and Reduced Cost.
Explanation:
A software such as an operating system is a system software pre-installed on a computing device to manage or control software application, computer hardware and user processes.
This ultimately implies that, an operating system acts as an interface or intermediary between the computer end user and the hardware portion of the computer system (computer hardware) in the processing and execution of instructions.
Some examples of an operating system on computers are QNX, Linux, OpenVMS, MacOS, Microsoft windows, IBM, Solaris, VM etc.
Re-engineering a software system has two key advantages over more radical approaches to system evolution:
a. Reduced Risk: this is simply because redeveloping a software poses a high risk to the business organization or individual due to developmental issues or errors.
b. Reduced Cost: the process of re-engineering is usually cheaper for businesses.
19. An investor has purchased a property that is giving him a 10% rate of return. Potential gross rents total $10,000.00 a month. Expenses for the property total $47,570.00 per year. The property has a vacancy rate of 8%. What is the market value of the property
Answer:
the market value of the property is $628,300
Explanation:
The computation of the market value of the property is shown below;
Gross rent $10,000 × 12= $120,000
Now
= $120,000 × .92 (occupancy rate)
= $110,400
After that
= $110,400 - $47,570
= $62,830
And ,finally the market value of the property is
= $62,830 ÷ 0.10
= $628,300
hence, the market value of the property is $628,300
The market value of the products or the goods and services is termed as the value of the company that is established as per the stock market. The current price of the company's share is totally based on the value and the goodwill of the company in the market.
The market value of the property is $628,300
The computation of the market value of the property is shown below;
Gross rent [tex]\$10,000 \times 12[/tex]= $120,000
Now,
= [tex]\$120,000\times .92[/tex] (occupancy rate)
= $110,400
After that
= $110,400 - $47,570
= $62,830
And ,finally the market value of the property is
= [tex]\frac{ \$62,830}{ 0.10 }[/tex]
= $628,300
Therefore, the market value of the property is $628,300
To know more about the market value, refer to the link below:
https://brainly.com/question/16003613
On January 2, Yorkshire Company acquired 29% of the outstanding stock of Fain Company for $440,000. For the year ended December 31, Fain Company earned income of $114,000 and paid dividends of $35,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Answer:
1. Jan 2 Dr Investment in Fain company stock$440,000
Cr Cash $440,000
2. Dec 31 Dr Investment in Fain company stock 33,060
Cr Income of Fain company 33,060
3. Dec 31 Dr Cash $10,150
Cr Investment in Fain company stock $10,150
Explanation:
Preparation of the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
1.Preparation of the entries for Yorkshire Company for the purchase of the stock
Jan 2 Dr Investment in Fain stock$440,000
Cr Cash $440,000
2. Preparation of The journal entry for the share of Fain income
Dec 31 Dr Investment in Fain stock 33,060
Cr Income of Fain company 33,060
(29%* $114,000)
3. Preparation of the journal entry for the dividends received from Fain Company.
Dec 31 Dr Cash $10,150
Cr Investment in Fain company stock $10,150
(29%$35,000)
What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35% of stock C with a beta of 1.73
Answer:
1.25
Explanation:
Calculation for What is the beta of a 3-stock portfolio
Portfolio beta = (.25 *0.9) + (.4 *1.05) + (.35 *1.73)
Portfolio beta = .225 + .42 + .606
Portfolio beta = 1.25
Therefore the beta of a 3-stock portfolio will be 1.25
Assign each of the following to a category of GDP. Assume products are made domestically unless indicated otherwise: You buy a car multiple choice 1 Consumption Investment Govt. Purchases Imports or Exports A bakery buys a new oven multiple choice 2 Consumption Investment Govt. Purchases Imports or Exports You get a haircut multiple choice 3 Consumption Investment Govt. Purchases Imports or Exports Your town buys a fire truck multiple choice 4 Consumption Investment Govt. Purchases Imports or Exports You buy shoes made in Thailand multiple choice 5 Consumption Investment Govt. Purchases Imports or Exports The Federal Government builds a bridge multiple choice 6 Consumption Investment Govt. Purchases Imports or Exports A private hospital buys a new MRI machine multiple choice 7 Consumption Investment Govt. Purchases Imports or Exports You stay in a hotel in Italy multiple choice 8 Consumption Investment Govt. Purchases Imports or Exports
Solution :
GDP stand for Gross Domestic Product. It is the measure of a national production and income of a country. It is the total produce of any country's products and services in a financial year that will boast its economy.
According to the question, assigning to the category of GDP are :
1. When we buy a car : --- Consumption
2. When a new oven is bought by a bakery : --- investment
3. When we get a haircut done : -- Consumption
4. Town buys a new fire truck : --- Government purchase
5. When we buy a new pair shoe that is made in Thailand : --- Exports or Imports
6. A bridge build by the Federal Government : --- Government purchase
7. A MRI machine bought by a private hospital : --- Investment
8. When we stay in hotel that is in Italy : --- Imports or Exports