Double-entry bookkeeping implies that:
A. aggregate income net of profits is less than the value of final output because profit can add or take away from final output.
B. profits fill the gap between the sum of employee compensation, rents and interest on the one hand and the value of final output on the other hand.
C. profits cannot be negative because profit equals the value of final output less costs.
D. aggregate income net of profits is greater than the value of final output because profit can add or take away from final output.
Answer: B
You might also like to view...
The yield to maturity for a discount bond is ________ related to the current bond price
A) negatively B) positively C) not D) directly
Economists classify all of the following as capital, except one. Which one is not capital?
a. a $20 bill in a firm's petty cash drawer b. the building where our economics class meets c. a plumber's wrench d. a railroad car e. a factory
Opportunities for arbitrage in the foreign exchange markets throughout the world are:
A. plentiful, particularly in developing nations. B. plentiful, particularly in markets trading in U.S. dollars. C. fleeting, because technology today allows quick trading that eliminate them quickly. D. fleeting, because most governments ‘peg' or fix their currency's value to another's.
If the real exchange rate for coal is 1.5, the price of coal in the U.S. is $50 per ton, and the price of coal in Britain is 20 British pounds per ton, what is the nominal exchange rate?
a. 15/4 b. 5/3 c. 3/5 d. 4/15