The term capital budgeting refers to decisions
A) which are made in the short run.
B) which concern the spreading of expenditures over a period lasting less than one year.
C) where expenditures and receipts for a particular undertaking will continue over a relatively long period of time.
D) where a receipt of cash will occur simultaneously with an outflow of cash.
C
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The fundamental identity of national income accounting implies ________
A) Expenditure = Production + Income B) Expenditure = Production = Income C) Income = Expenditure - Production D) Income = Expenditure / Production E) None of the above
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. How much wheat goes to waste under the program?
A. 10 billion bushels per year B. 4 billion bushels per year C. 6 billion bushels per year D. No wheat goes to waste.
Long-run average cost of the perfectly competitive firm includes the
a. cost of raw materials per unit of output. b. opportunity cost of labor per unit of output. c. opportunity cost of capital per unit of output. d. All of the above are correct.
The government component (G) of total output includes goods and services purchased by
a. the federal government plus transfer payments. b. all government institutions plus transfer payments. c. all government institutions. d. all government institutions plus tax revenues.