contestada

Howard Nets & Co. is a basketball net making company. Last year, Howard Nets & Co. had $2,000 worth of inventories (stored basketball nets). This year, they produce $115,000 worth of basketball nets and sell $114,850 worth. What is the change in Howard Nets & Co.'s inventories and how much does Howard Nets & Co. contribute to GDP this year?

Respuesta :

Answer:

$150; $115,000

Explanation:

Given that,

Last year inventories = $2,000

Basket ball nets produce in the current year = $115,000

Basketball nets sell in the current year = $114,850

Change in inventories:

= Value of basketball nets produce - Value of basketball nets sold

= $115,000 - $114,850

= $150

GDP of a nation refers to the total production of goods and services within the boundaries of a nation in a given year.

Therefore, there is a production of basketball nets worth of $115,000 in the current year which contributes towards the calculation of GDP.

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