Question: Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000, but does not increase GDP?

Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000, but does not increase GDP?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Gabe and Sarah would like to begin saving for their children's college education. They would like to know the amount of college funds that would be necessary on day one of college to pay for all...

Q:

1. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000 but does not increase GDP. 2. What are the elements that make up GDP? 3. Explain why the very top athletes...

Q:

1. 2.7 Buying a Foreign Car. Explain why buying a foreign car made abroad for $50,000 increases consumption by $50,000 but does not increase GDP.

Q:

I am struggling with 3 case studies that I need for my international business class. Can you please help me understand the text by summarizing each article, listing the important facts, key issues,...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Section A- Short Answer Questions - 60 Marks 1.(i) If there was no item in the economy widely accepted in return for goods and services, how would transactions be made? How efficient would such a...

Q:

Scenario You and your group work for a multi-national consulting firm. Your team is a group of capital budget consultants and are seeking new engagements. You intend on responding to a Request for...

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

1. According to the text, as compared to rich countries, most of the poor countries do not fare well because: a. they have no oil. b. the people in these countries have limited property rights. c....

Q:

Volkswagen used in entering the Chinese market; and (4) the responses of the company to increasing competition, including but not limited to that of General Motors. Government policies and...

Q:

A quality standard says that no more than 2 percent of the eggs sold in a store may be cracked (not broken, just cracked). In 3 cartons (12 eggs each carton), 2 eggs are cracked. (a) Calculate a...

Q:

In this chapter, we learned that one way to lower personal-probability assessments that are too high is to list reasons why you might be wrong. Explain how the availability heuristic might account...

Q:

The future value of a sum of money is influenced by Group of answer choices The interest rate and the time period The type of currency The past value of money The stock market performance

Q:

Myrtle Coast Corporation has a $35,000 operating loss during the current year. Not included in the loss is a $40,000 dividend it received from a corporation in which it owns a 15% interest. Identify...

Q:

What does the real interest rate equal, given the following: (a) Nominal interest rate = 8 percent; expected inflation rate = 2 percent; (b) Nominal interest rate = 4 percent; expected inflation rate...

Q:

Using the data given above, what amount of premium will be amortized by Star Inc. on October 1, 2016, using straight-line amortization? Give the general journal entry to record this amortization....

Q:

Powell owns a 20% interest in Cooke Partnership. At the beginning of 2010, Powell's basis is $22,000. Cooke reports a $90,000 operating loss in 2010, and Powell withdraws $10,000 from the...

Q:

Powell owns a 20% interest in Cooke Partnership. At the beginning of 2015, Powell's basis is $22,000. Cooke reports a $90,000 operating loss in 2015, and Powell withdraws $10,000 from the...

Q:

Question 7 . Given the following simple maze, convert the maze into a graph. ( 5 points ) Question 8 . Implement depth first search in the maze function in homework 1 . py . ( 2 0 points ) Question 9...

Q:

6. How can hidden knowledge guide our actions?

Q:

7. How can the models we use have a detrimental effect on others?

Q:

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...