Please solve and explain!! Thank you!! #4) An artist buys scrap metal from a loc
ID: 1115811 • Letter: P
Question
Please solve and explain!! Thank you!!
#4) An artist buys scrap metal from a local steel mill as a raw material for her sculptures. Last year, she purchased $6,000 worth of scrap metal. With the steel she produced 10 authentic sculptures that she sold for $900 each to a local art dealer. The art dealer then sold all of the sculptures to art collectors for an average of $1,100 each.
The total value added of the artist is $. (Enter your response as an integer.)
a) $9,000 b) $900 c) $11,000 d) $3,000
#5) If you were attempting to forecast the level of consumer spending by households, which measure of total production or total income might be most helpful in making your forecast?
a) Personal income b) Disposable personal income c) Net national product d) Gross national product
Explanation / Answer
4) Ans: $3,000
Explanation:
Value added of the artist = ($900 * 10) - $6,000 = $3,000
5) Ans: Disposable personal income
Explanation:
DPI = Gross incone - incone tax
The level of consumer spending depends on DPI