Table 12-17 A Very Simple Economy Produces Three Goods: Movies, Burgers, and \text

question 138

Multiple Choice

Table 12-17
$\begin{array}{|c|c|c|c|c|}\hline & 2013 & & 2018 & \\\hline \text { Product } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline \text { Movies } & 20 & \$ 6.00 & 30 & \$ 7.00 \\\hline \text { Burgers } & 100 & 2.00 & 90 & 2.50 \\\hline \text { Bikes } & 3 & 1,000.00 & 6 & 1,100.00 \\\hline\end{array}$ A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.
-Refer to Table 12-17.What is nominal GDP in 2013?

• A) $3,320
• B) $3,690
• C) $6,360
• D) $7,035

Identify and classify expenditures as revenue expenditures or capital expenditures.

Calculate the cost of new assets acquired through exchange with consideration of commercial substance.

Recognize and account for gains and losses on the exchange of plant assets with commercial substance.

Determine the cost components and proper accounting treatment for land purchases and related expenditures.

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Definitions:

Internal Proposals

These are suggestions or plans submitted within an organization aiming to initiate change or improvement.

Investment Proposals

Documents or presentations that outline the details and potential benefits of investing in a particular project or venture.

Grant Proposals

Written requests for financial funding from organizations or governments to support specific projects or activities.

Analytical Report

A document that presents detailed analysis and evaluation of data or findings, often used for decision-making or understanding complex issues.