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A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result, a) U.S. investment and GDP increase, but German GDP is unaffected. b) U.S. investment and German GDP increase, but U.S. GDP is unaffected. c) U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods. d) U.S. investment, U.S. GDP, and German GDP all increase.

Answers

Answer 1

Answer:

Answer:

The correct answer is option a.

Explanation:

A Minnesota farmer buys a new tractor made in Iowa by a German company.

This transaction will lead to an increase in US investment and US GDP. There will be no effect on German GDP.

Since tractor is a capital good its purchase will be included as investment expenditure. Even though the company is German, the production and sale take place within the geographical boundaries of the US, the transaction will be included in the US GDP, not in German GDP.

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A bagel shop sells fresh baked bagels from 5 a.m. until 7 p.m. every day. The shop does not sell day-old bagels, so all unsold bagels are thrown away at 7 p.m. each day. The cost of making and selling a dozen bagels is $1.00; there are no costs associated with throwing bagels away. If the manager has 8 dozen bagels left at 6:30 p.m. on a particular day, which of the following alternatives is most attractive? A. Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen.
B. Lower the price of the remaining bagels, but under no circumstances should the price fall below $1.00 per dozen.
C. Throw the bagels away and produce 8 fewer dozen bagels tomorrow.
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Answers

Answer:

which of the following alternatives is most attractive?

Explanation:

Lower the price of the remaining bagels, even if the price falls below $1.00 per dozen.

It can be the improvement in order to recover the bagels cost without having to throw them away

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1.If individual income tax accounts for more total revenue than the payroll tax in the U.S., why would over half the households in the country pay more in payroll taxes than in income taxes?
2.If the state of Washington's government collects $75 billion in tax revenues in 2013 and total spending in the same year is $74.8 billion, the result will be a:

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1) this is because the households that make 40 000 dollars a year or less, while not paying income taxes at all, pay payroll taxes.

2)What we see here is that the government collects more than it spent (0.2 billion) - we call this situation a budget surplus.

The bank statement shows a balance of $4250, deposits in transit total $1200, and outstanding checks that equal $300. The check registar balance should be; A.2750? B.$3350 C.$4550 D.$5150 E.$5750