Which of the following is an accurate difference between the underground economy and nonmarket transactions?
a. The underground economy includes cleaning dorm rooms; nonmarket transactions
include freelance work.
b. The underground economy is prevalent in developing nations; nonmarket
transactions are rare in these nations.
c. The underground economy is mostly reported to the government; nonmarket
transactions are unreported.
d. The underground economy may involve illegal activities; nonmarket transactions
involve legal activities.
d. The underground economy may involve illegal activities; nonmarket transactions
involve legal activities.
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An advantage of the corporate form of business organization is
A) unlimited liability. B) easier access to capital. C) that profits are taxed only on one level. D) government supervision of its activities.
Bonds are
A. shares of ownership in a corporation. B. promises to repay loans. C. promissory notes issued by proprietorships. D. promissory notes issued by partnerships.
In the U.S. balance of payments, U.S. purchases of assets abroad are a(n):
A. U.S. dollar outflow. B. U.S. dollar inflow. C. current account item. D. inpayment.
If output is falling and unemployment is rising, the economy must be in a(n)
A. depression. B. contraction. C. expansion. D. hyperinflationary period.