Answer:
False
Explanation:
The higher the rating, the better. Option 2 has a rating of 22, while option 1 has a rating of 18, therefore option 2 should have a better layout.
A bad layout can have a significant negative impact on an organization, especially on how employees carry out their activities or production processes can be delayed.
The purpose of the closeness desirability rating is to find the most effective physical arrangement for the offices and facilities, so that both employees and resources are properly distributed to facilitate the production of goods and services. The factors that are used to develop the closeness desirability rating are qualitative factors like noise levels, heat levels, material and operating flows, etc.
Final answer:
The answer is False. A higher closeness desirability score indicates a better layout, thus suggesting that Option 2 with a score of 22 is better than Option 1 with a score of 18.
Explanation:
The question relates to the Closeness Desirability Rating which is a method used in business and operations management to evaluate the effectiveness of different service or manufacturing layouts. When comparing two potential service layouts, a higher closeness desirability score generally indicates a better layout as it suggests elements that should be close to one another are arranged more optimally. Therefore, with Option 1 having a closeness desirability score of 18, and Option 2 having a score of 22, it can be concluded that Option 2 layout is better than Option 1.
Given this information, the answer to the student's question is False. Option 1 is not better than Option 2 in terms of closeness desirability since it has a lower score.
A lawnmower assembly plant uses a variety of nuts, bolts, screws, and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule. This is an example of
A. e-procurement.
B. vendor-managed inventory.
C. postponement.
D. single stage control of replenishment.
Answer:
B. vendor-managed inventory.
Explanation:
A simplified approach to inventory management and order fulfillment is the Vendor Managed Inventory (VMI).
VMI includes coordination between manufacturers and their customers (e.g. distributors, retailers, OEMs or end users of products) which transforms the conventional purchasing process.
VMI's objective is to harmonize business goals for both suppliers and their customers and streamline supply chain operations.
Higher Sales.Best and Improved Service.Improved Inventory TurnsWhat is the correct way to feed a resident that is unable to feed themself?
A. Talk quietly to the resident about their day.
B. Sit silently and they will let you know when they are ready for another bite.
C. The cooler the food, the better, you do not want to burn them.
D. You will never need gloves for feeding someone.
Answer: The cooler the food the better, you don't want to burn them.
Explanation: as used in the question a resident is someone unable perform some basic functions by themselves, either as a result of advanced age or illness.
The residents should be properly taken care of, and shown care at all times. When feeding them temperature of food shouldn't be too hot to avoid burning them.
While the store of information, skills, and strategies that people have acquired during life holds steady, the ability to deal with new problems and situations, called __________ intelligence, declines with age.
Answer:
fluid intelligence
Explanation:
Fluid intelligence -
It is the capability to think wisely and logically , solve any issue according to the situation and does not depend on the acquired knowledge is known as fluid intelligence .
Fluid intelligence helps to deal with the worst situation possible in a very peaceful and logical manner and helps to live life in a better and happy way .
This capability often reduces with the growing age , as people tends to get older .
Pine Groove, a cosmetics brand that primarily caters to women, wants to reach out to the less- Pine traditional male market. It conducts research and develops a new product especially for men. In this context, Pine Groove uses:________
a) ethnicity segmentation
b) age segmentation
c) gender segmentation
d) psychographic segmentation Save
Answer:
The correct answer is c) gender segmentation .
Explanation:
Gender is a distinctive segmentation variable. However, it seems that sexual roles tend to fade and that gender is no longer an effective means of distinguishing consumers in some product categories.
Advertising segmentation based on gender does not mean that ads are sexist. Advertisers have to understand what the characteristics of their audience are if they want to succeed. That is why it is no accident that cleaning ads allude to women, if one takes into account that many of them buy these products for their homes. The higher the percentage of women who use a product, the more advertising will be segmented to women instead of men.
____________ requires unbiased and careful questioning of whether system elements are related in the most effective ways, considering new or different relationships among system elements, and possibly introducing new elements into the system.a. Causal analysis b. Creative analysisc. Critical analysis d. Data flow analysis
Answer: (C) Critical analysis
Explanation:
The critical analysis is one of the type of ability in which the individual person understanding all the logical connection and think more clearly about the situation.
By using the critical analysis we can analyze all the problems in more systematic manner by break down the data into the smaller parts for understand the problem more efficiently and easily.
In the critical analysis process, the system introducing the various type of new elements in system by considering different relationship of the elements.
Therefore, Option (C) is correct.
Explain why the private sector is reluctant to produce public goods.
Answer:
The private sector is reluctant to produce public goods because their key characteristics, nonexcludability and nonrivalrousness, make it difficult to sell them to individual customers.
Explanation:
Nonexcludability means one person cannot prevent others from using the good, such as good air. Non rivalriousness means one person using a good does not prevent others from using it, such as a the beautiful view of a monument. Because people can free-ride (using the goods without paying), firms do not profit.
When a company issues 33,000 shares of $4 par value common stock for $40 per share, the journal entry for this issuance would include__________.
Answer:
Debit Cash or Bank Account $1,320,000
Credit Share Capital Account $132,000
Credit Share Premium Account $1,188,000
Explanation:
The journal entry to record issue of common stock for more than its par value will be as follows:
Debit Cash or Bank Account
(33,000 shares × $40 per share) $1,320,000
Credit Share Capital Account
(33,000 shares × $4 par value per share) $132,000
Credit Share Premium Account
(33,000 shares × ($40 - $4)per share) $1,188,000
Share capital account is always credited for issuance of shares at par value and the difference between par value and issuance value is taken to the share premium account. Here, the company issued its shares at $36 per share premium.
Final answer:
The journal entry for the issuance of 33,000 shares at $40 per share includes a debit to Cash for the total amount received, a credit to Common Stock for the par value, and a credit to Additional Paid-In Capital for the excess over par value.
Explanation:
When a company issues 33,000 shares of $4 par value common stock for $40 per share, the journal entry would include a debit to Cash for $1,320,000 (33,000 shares x $40 per share), a credit to Common Stock for $132,000 (33,000 shares x $4 par value), and a credit to Additional Paid-In Capital (or Paid-In Capital in Excess of Par) for $1,188,000 (the difference between the cash received and the par value of the stock, which is the amount received ($1,320,000) minus the par value amount ($132,000)). This transaction reflects the inflow of cash and the issuance of common stock, as well as the distinction between the stock's par value and the excess amount paid by shareholders, which represents additional capital for the company.
In an open economy, gross domestic product equals $3,500 billion, consumption expenditure equals $2100 billion, government expenditure equals $400 billion, investment equals $800 billion, and net exports equals $200 billion. What is national savings? Group of answer choices
a.$200 billion
b.$600 billion
c.$800 billion
d.$1,000 billion
Answer:
option (d) $1,000 billion
Explanation:
Data provided in the question:
Gross domestic product = $3,500 billion
Consumption expenditure = $2,100 billion
Government expenditure = $400 billion
Investment = $800 billion
Net exports = $200 billion
Now,
National savings
= GDP - (Consumption expenditure + Government consumption)
= $3,500 billion - ( $2,100 billion + $400 billion )
= $1,000 billion
Hence,
The answer is option (d) $1,000 billion
The law of comparative advantage indicates thata. specialization and exchange will permit trading partners to maximize their joint output.b. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods.c. a nation can gain from trade only when its trading partners are not low-wage countries.d. countries should export products for which they are high-opportunity cost producer.
Answer:
The correct answer is option a.
Explanation:
The law of comparative advantage states that a country should produce and export that product in which it experiences comparatively lower opportunity costs. The countries will be said to be specializing in the production of goods and services that they can produce at a relatively lower opportunity cost.
If two countries produce and exchange the goods they specialize in, they will be able to jointly produce more and consume more than they could individually.
A government issued general obligation bonds to finance the construction of a new fire station. In the current year, the government incurred $107,000 of interest expense on the debt. This amount will be reported on the government-wide statement of activities as________.
Answer: The correct answer is "Interest expenses of the governmental activities.".
Explanation: This amount will be reported on the government-wide statement of activities as interest expenses of the governmental activities since it corresponds to interest expenses paid for the issuance of debt to finance government activities.
During its first year of operations, Crane Company had credit sales of $3,531,400; $664,000 remained uncollected at year-end. The credit manager estimates that $36,000 of these receivables will become uncollectible. Prepare the journal entry to record the estimated uncollectible. (Assume an unadjusted balance of zero in Allowance for Doubtful Accounts.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
Bad debt expense...................Dr $36,000
Allowance for doubtful debts $36,000
(To record uncollectibles)
Explanation:
Certain amount of credit sales that the manager estimates to be uncollectible is called bad debts. They are written off at the end of the year. As per allowance method, estimated uncollectibles or bad debts are charged to allowance for doubtful debts.
Here, $36,000 has been estimated by the manager as estimated uncollectible
Journal entry to record uncollectibles:
Particulars Debit Credit
Bad debt expense $36,000
Allowance for doubtful debts $36,000
(To record uncollectibles)
A sunk cost is described as which of the following? A. An outlay expected to be incurred in the future B. One that is relevant to a decision because it changes depending on the alternative course of action selected C. A historical cost that is always irrelevant D. A historical cost that may be relevant
Answer: Option C
Explanation: In simple words, sunk cost refers to the cost that a company has already incurred and cannot recover it in future in any way for example- market research cost before introducing a product in the market.
No matter whether the organisation takes the prospective project or not these costs are not recoverable, hence they are considered to be irrelevant with respect to decision making.
Hence we can conclude that the correct option is C.
A sunk cost is a historical cost that is always irrelevant for future decisions. These costs have already been incurred and cannot be recovered, no matter what future actions or decisions a company takes.
Explanation:In business terms, a sunk cost is most accurately described as a historical cost that is always irrelevant to future business decisions, option C. The main characteristic that distinguishes a sunk cost from other types of cost is that it has already been incurred and cannot be recovered, no matter what future action is taken.
For instance, if a company has invested in a piece of equipment that is no longer useful or efficient, that investment is a sunk cost because the capital spent cannot be retrieved or adjusted, regardless of future actions or decisions.
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Al works in the warehouse for his company and receives $12.75/hour. He occasionally works in the Quality Assurance (QA) department as a receiving clerk and earns a 15% differential for hours worked there. During a two-week pay period, he worked 72 hours in the warehouse and 12 hours in the QA department. He worked all overtime hours in the warehouse. Standard workweek has 40 hours. What is his gross pay for the pay period?
A) $1,071.00
B) $1,096.50
C) $1,042.95
D) $1,119.45
Answer:
The answer is D) $1,119.45
Explanation:
Summary of pay-rate per hour of AI is as followed:
- Normal working-time at warehouse: $12.75
- Normal working-time at QA: 12.75 x 1.15 = $14.66
- Overtime at warehouse: 12.75 x 1.5 = $19.125
During the two-week pay period, AI has work 84 hours ( 72 +12), in which overtime working is 4 hours ( 84 - 40 x 2) at warehouse.
Thus, total payment to Al is as followed:
Payment from 68 working-hour at warehouse in normal working time + Payment from 12 working-hour at warehouse in normal working time + Payment from 4 working-hour at warehouse in overtime working = 68 x 12.75 + 12 x 14.66 + 4 x 19.125 = $1,119.45
Al's gross pay is calculated by adding his standard warehouse earnings and the earnings from his QA department work with a 15% differential. The total gross pay is $1,093.95, which is rounded to B) $1,096.50.
To calculate Al's gross pay for the pay period, we need to separate his earnings from warehouse work and from the Quality Assurance (QA) department, including the differentials and any overtime pay.
Al's regular hourly wage in the warehouse is $12.75. For a two-week period, the standard workweek is 40 hours, so he works a total of 80 hours standard time. Al worked 72 hours in the warehouse, all of which is within the standard work time, with no overtime calculation needed for the warehouse hours.
Al also worked in the QA department, where he receives a 15% differential. To find the rate for QA work, calculate 15% of his warehouse rate:
QA Rate = Warehouse Rate + (15% of Warehouse Rate)QA Rate = $12.75 + ($12.75 * 0.15)QA Rate = $12.75 + $1.9125QA Rate = $14.6625Now, let's calculate Al's earnings for the pay period:
Warehouse earnings = Warehouse hours * Warehouse rateWarehouse earnings = 72 hours * $12.75Warehouse earnings = $918QA earnings = QA hours * QA rateQA earnings = 12 hours * $14.6625QA earnings = $175.95Thus, Al's total gross pay is the sum of his warehouse and QA earnings:
Gross pay = Warehouse earnings + QA earningsGross pay = $918 + $175.95Gross pay = $1,093.95Therefore, the correct answer is B) $1,096.50.
Restore Construction Company enters into a contract to remodel Sam’s Home Store, agreeing to use only products from United Building Supplies. Halfway through the project, Restore refuses to finish the job. The contract can be enforced against Restore by:
Answer:
Sam’s Home Store can enforce the contract against Restore Construction Company
Explanation:
In contract law, only the parties involved in a contract can take action to enforce the contract. In this case Sam' Home Store signed the contract with Restore, so they can enforce it. Any third party beneficiaries from the contract, like United Building Supplies, are not entitled to enforce anything.
The contract between Restore Construction Company and Sam's Home Store, which specifies the use of products from United Building Supplies, can be enforced against Restore if they refuse to complete the project. If Restore has no justification for their refusal, Sam’s Home Store has the right to seek legal enforcement or damages.
Explanation:The question concerns the enforcement of a contract in a scenario where one party, Restore Construction Company, refuses to complete a remodeling project for Sam's Home Store as per their agreement. In legal terms, the contract in question specifies that Restore must use products from United Building Supplies exclusively. When Restore refuses to continue with the project, legal principles come into play to ensure that the contract can be enforced against Restore.
Given that a binding agreement exists and assuming there is no justifiable reason for Restore to abandon the project, Sam's Home Store has the right to seek enforcement of the contract. This could include requiring Restore to complete the job as agreed or potentially seeking compensatory damages for the breach. This scenario highlights the importance of understanding contractual obligations and remedies available when one party does not fulfill their end of the bargain.
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The market failure that observes when a cost or benefit is not reflected in the price of a good is _____.
Answer:
Externality
Explanation:
An externality is an economic term that refers to an expense or profit that a third party has paid or earned.
The third party, though, has no influence over the expense or benefit being created.
The externality can be either positive or negative and can arise from either a good or a service being generated or consumed.
The costs and benefits can be either personal — to a person or an entity — or public, which means it can influence the whole of society.
In every economic system, scarcity imposes limitations on a. households, business firms, governments, and the nation as a whole b. households and business firms, but not the governments c. local and state governments, but not the federal government d. households and governments, but not business firms e. business firms, governments, and the nation as a whole
Answer: a) households, business firms, governments, and the nation as a whole
Explanation:
Scarcity means shortage in availability or supply. It affects all because households, business firms, government will always have a need that must be satisfied. They fall under supplier or consumers. Scarcity can cause higher demand irrespective of the price
The salesperson featured in the video, Dominic DeMarino, is a Pacemaker Defibrillator Sales Representative for Medtronic. As part of his job, he is often invited to large hospitals to participate during open-heart surgeries in order to ensure the company's medical devices are working properly. Based upon this description, Dominic could best be described as a(n)______.
Answer:
field sales representative
Explanation:
Based upon this description, Dominic could best be described as a field sales representative. This is a type of salesperson, usually those working for wholesale organizations, and who's main task is going outside of the company and visiting potential customers in order to sell them the company's products or services. Other than this the job mostly entails forming great professional relationships with the customers. One way of doing so is by attending events and making sure the products that you have sold are working correctly and that the customer is content with it, as described in the scenario in the question.
Companies with centralized authority systems typically require multiple layers of management and have ________ organizational structures. broad flexible flat tall
Answer: tall organisational structure
Explanation: In simple words, it refers to a structure in which an organisation is divided into many division and the executive level managers appoints individual managers at every division who are responsible for managing that separate division only.
Such kinds of structure is used in organisation having centralized authority as all the decisions are made by a handful of executives so it is important that they get proper information from the divisional heads that they have appointed. Therefore, managers with proper knowledge are appointed at every stage.
Answer:
tall organisational structure
Social media sites like StuffDOT are often classified based on two factors; self-disclosure and ________, which is the degree of acoustic, visual, and personal contact between two communication partners.
A) media responsiveness B) involvement C) capture rate D) interactivity E) media richness
Answer:
E) media richness
Explanation:
Based on the information provided within the question it can be said that these sites are often classified as self-disclosure and media richness. Media Richness refers to ability that the media has in regards to transmitting the needed information in a fast and efficient manner, in a acoustic, visual, and personal manner between people.
What term is used for bonds that have specific assets pledged as collateral?A. Convertible bonds.B. Discount bonds.C. Callable bonds.D. Secured bonds.
Answer:
Secured bond
Explanation:
It is a bond whose endorsement is an asset that is tied to the bond, there are some of them whose endorsement is a asset like ABS (Assest backed securities) or other with specific destination like MBS (mortgage backed security).
Cox Footwear pays a constant annual dividend. Last year, the dividend yield was 3.2 percent when the stock was selling for $35a share. What is the current price of the stock if the current dividend yield is 2.9 percent?a $18.92 b $38.62 c $25.20 d $26.87 e $27.40
Answer:
The current price of the stock is b. $38.62
Explanation:
Hi, in order to find the current price of the stock, first we need to find the amount paid as a constant dividend, the formula is as follows.
[tex]DivYield=\frac{Dividend}{Price}[/tex]
So, things should look like this
[tex]0.032=\frac{Dividend}{35}[/tex]
[tex]Dividend=0.032*35=1.12[/tex]
So the amount of constant dividend tha this company is paying is $1.12/share
Now we can find the current price using the same equation and solving for "Price",
[tex]0.029=\frac{1.12}{Price}[/tex]
[tex]Price=\frac{1.12}{0.029} =38.62[/tex]
Therefore, the current price of the stock is $38.62, that would be option b.
Best of luck:
The human resource management activities that are associated with the movement of employees within the company and the relationship between employers and employees within the company are referred to as ________.
Answer:
Employee Relations
Explanation:
Employee relations refers to all activities that are related with the movement of the employees within the organization. A well structured employee relations program promotes employee commitment and loyalty to the organization, thus increases organizational productivity.
A cell phone manufacturing firm produced 1,000 cell phones a day but believed that it could reasonably top up production to 2,000 cell phones a day. Consequently, it built a larger plant and installed efficient machineries and work arrangements to realize the projected output. Which of the following can most likely be inferred from this information?
a. the unit cost of producing 2,000 cell phones per day would be twice that of the unit cost of producing 1,000 units per dayb. a production plant with the capacity of producing 5,000 cell phones a day would be most efficientc. the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per dayd. a 2,000-capacity production plant would be less efficient because of increasing diseconomies of scalee. the fixed costs of the firm are more likely to increase with the increase in output
Answer:
the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.
Explanation:
The costs of producing the 2000 units per day will be lower due to the following reason:
Economies of scale. The company will enjoy the benefits associated with large scale productions. When purchasing raw materials, the company will be a position to bargain for better discounts. The production cost is spread among finished products. A large production keeps the cost per item low.
Some fixed costs may not change. By adding a new plant, the company will increase production activities. Variable costs will increase, but some fixed costs are likely to remain the same. Administrative cost, top management salaries will not be affected. It means a larger number of finished used will absorb the fixed cost.
Efficient machines: The company has invested in new and more efficient machines. Efficiency implies the use of less labor, less power, and faster production. The result is a lower cost of production.
This text appears on the economics page of the local newspaper. One of the sentences is incorrect. Which corrected sentence would make the passage accurate?
A) Prices are rising as investments and lending increase.
B) Prices are stabilizing as investments increase and lending decreases.
C) Expand the money supply by halting the sale of government securities
D) Expand the money supply by lowering discount rates and reserve requirements.
Answer:
D) Expand the money supply by lowering discount rates and reserve requirements.
Explanation:
By lowering discount rates, the Fed pushes the costs of borrowing money lower. The discount rate is the rate that the Fed applies when it lends money to banks. It has similar effects on interest rates as the fed funds rate. Lowering the discount rate will discourage banks from holding excess reserves. They will want to lend out to households and businesses to earn interests. As they loan out, they are increasing the money supply in the economy.
The Fed instructs banks to maintain a certain percentage of deposits as reserves. Banks cannot loan out the reverse amount. Should the fed lower reserve requirements, banks will have a higher proposition of deposits to loan out. The availability of more credit increases the money supply in the economy.
The corrected sentence that would make the passage accurate is Prices are rising as investments and lending increase is incorrect. The correct option is A.
Explanation:To identify the corrected sentence in the given passage, we need to examine each option. Option A states that prices are rising as investments and lending increase, which could be a plausible explanation for rising prices. Option B claims that prices are stabilizing as investments increase and lending decreases, which doesn't explain the rising prices. Option C suggests expanding the money supply by halting the sale of government securities, which isn't related to the topic of rising prices. Option D suggests expanding the money supply by lowering discount rates and reserve requirements, which is more relevant to managing inflation rather than explaining rising prices. Therefore, the corrected sentence that would make the passage accurate is option A).
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The headline of a General Motors advertisement in a recent Reader's Digest magazine read, "I believe these kids will make great engineers. Now I've got to make them believe it." The ad shows an engineer surrounded by seven young people. The ad copy talks about how General Motors believes the more the company puts into the community, the more society will get out of the community. This advertisement is an example of a(n):
A) competitive institutional advertisement.
B) competitive product advertisement.
C) publicity announcement.
D) advocacy institutional advertisement.
E) pioneering institutional advertisement.
Answer:
D) advocacy institutional advertisement.
Explanation:
It is a type of institutional advertising promotion, since it intuits that children will be engineers, which generates that in the future they want to work in the best company for that which would be General, it implies that it is in the hands of General to create favorable situations for that these people develop in society as engineers and that they see General as the best.
Economics is best defined as the study of_______.
A. financial markets and making money.
B. how people allocate limited resources to satisfy unlimited wants.
C. how to budget personal income.
D. how the government runs the financial system.
Answer:
B. how people allocate limited resources to satisfy unlimited wants.
Explanation:
Lord Robbins in 1932 defined economics as the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.
Economics studies how people allocate limited resources to satisfy unlimited wants.
A manufacturing company is thinking about building a new factory. The factory, if built, will yield
the company $300 million in 7 years, and it would cost $220 million today to build. The company will decide to build the factory if the interest rate is
a. no less than 4.53 percent.
b. no greater than 4.53 percent.
c. no less than 5.81 percent.
d. no greater than 5.81 percent.
Answer:
B) no greater than 4.53 percent
Explanation:
We need to calculate the present value of $300 million using both discount rates:
present value₁ = $300 / 1.0453⁷ = $220
present value₂ = $300 / 1.0581⁷ = $202
In order for a project to be accepted, its NPV ≥ 0, and only if we use the 4.53% discount rate will our project have a NPV of 0 (= $220 - $220).
So the company will decide to build the factory only if the interest rate (discount rate) is no greater than 4.53%.
Is the process of an economy’s increasing industrialization
Answer:
Economic development
Explanation:
Economic development is the process of an economy increasing industrialization, the standard of living of its citizens and overall economic wealth.
This process starts to take place when a poor country starts an industrialization process. The second level is called developing economy, since the economy has not been fully industrialized yet, but the standard of living and the economic wealth are improving.
The third level would be when a country becomes a developed economy , since it has reached full industrialization, its citizens' standard of living is high and the overall economic wealth is also high.
Polo Co. requires higher rates of return for projects with a life span greater than 5 years. Projects extending beyond 5 years must earn a higher specified rate of return. Which of the following capital budgeting techniques can readily accommodate this requirement? Internal Rate of Return Net Present Value A Yes No B No Yes C No No D Yes Yes
Answer:
D) Yes Yes
Explanation:
The internal rate of return measures the profitability of an investment, so if Polo Co. requires a higher rate of return it must use this ration to compare possible projects.
The net preset value determines the current value of future discounted cash flows. Depending on the discount rate, the NPV will change. If Polo Co. requires higher rates of return, it can use a higher discount rate to determine the NPV of a potential project. Only projects with an NPV ≥ 0 should be accepted.
In a certain economy in 2005, the value of imports amounted to 80 percent of the value of exports. Consumption, investment, and government purchases added up to $5,000. The market value of all final goods and services produced within the economy was $5,500. It follows that the economy exported_________.
a. $500 worth of goods and services.
b. $1,000 worth of goods and services.
c. $1,500 worth of goods and services.
d. $2,500 worth of goods and services.
Answer:
d. $2,500 worth of goods and services.
Explanation:
The national income identity is given by:
GDP = C + I + G + EX − IM.
Market value of all final goods and services produced within the economy was $5,500 => GDP = $5,500
Consumption (C), investment (I), and government purchases (G) added up to $5,000 => C + I + G = $5,000
=> EX - IM = GDP - (C + I + G) = $500
Imports amounted to 80 percent of the value of exports => IM = 0.8EX
=> EX - 0.8 EX = $500
=> EX = $2,500