"Countries are poor because they cannot afford to save and invest" is called the:
a. vicious circle of poverty. b. savings-investment trap.
c. LDC trap. d. cycle of insufficient credit.
a
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A business owner makes 50 items a day. Each day he/she contributes 8 hours to produce those items. If hired, elsewhere he/she could have earned $10 an hour. The item sells for $10 each. Production does not stop during weekends. If the explicit costs total $10,00 . for 30 days, the accounting profit for the month equals:
a. $1,760 b. $2,240 c. $11,760 d. $5,000
Which of the following is least likely to induce precautionary saving?
a) the decision to retire from work at age 62 b) the possibility of being laid-off from work c) the uncertainty of one’s lifetime d) the risk of becoming ill e) the prospect of a potentially large tax increase in the future
Corporate profits are
A) taxed at too low a rate. B) taxed only when a stockholder sells his or her shares of stock. C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends. D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.
A bond is
A. a claim on the assets of a corporation such that the purchaser has an ownership right in the corporation. B. anything of value to which the firm has a legal claim. C. a means of assuring that the business firm will pay its debts or fulfill other legal obligations. D. a promise to pay for the use of someone else's money.