Reference no: EM13833265
For each of the following transactions, how much does US GDP increase? And how much, if at all, do consumption, investment, government purchases and net exports change?
1. Peter Rich buys a 1928 painting by Pablo Picasso at an auction for $1 Million. In addition to the purchase price, he pays a services fee of $30,000 to the auction house.
2. A US automobile maker buys car parts for $50,000 from Mexico. Those parts are assembled together with American parts (made in the current year) and 10 cars are built. Eight of these cars sell for $20,000 each in the US, one is sold to Canada for $20,000, and one is kept as inventory, valued at $18,000.
3. Peter Rich pays $100,000 in income taxes. Half of this revenue is used by the government to pay the salary of an employee of the Department of Labor, and the other half is used to pay unemployment benefits.
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Industries have recorded remarkable growth in productivity
: The country of Alcazar has been growing at an impressive pace for the last five years. With improvements in technology, many industries have recorded remarkable growth in productivity
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Increase in demand and increase in supply will lead
: Increase in demand and increase in supply will lead to?:
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Recent industry report concluded that the global demand
: A recent industry report concluded that the global demand for the good X is expected to increase. Based on the demand projections given in the report Colaba, a firm that produces and sells X, is contemplating hiring more labor to increase production.
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Class assignment on economic growth
: Dan Demaar and Rob Runten are working on a class assignment on economic growth. Dan collects the GDP growth data for the country Fanez, which is located in the Middle East.
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Government purchases and net exports change
: For each of the following transactions, how much does US GDP increase? And how much, if at all, do consumption, investment, government purchases and net exports change?
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Use sales taxes as means of generating revenue
: State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
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Theories relating to organisational change
: How to implement a change programme and Critically evaluate two or more models or theories relating to organisational change.
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Prepare the necessary adjusting journal entries for items a
: Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2013..
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Maintenance differ from the traditional approach
: How does lean maintenance differ from the traditional approach under which a maintenance department has the responsibility for all maintenance functions? Which level on the maintenance performance hierarchy would you expect to find a lean maintenance..
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