Single-owner proprietorships often unintentionally exaggerate their profits because they
A) forget their explicit losses.
B) look at after-tax instead of pre-tax costs.
C) pay their bills late and therefore incur large interest charges.
D) neglect to consider the opportunity cost of the owner's labor.
Answer: D
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Which of the following is CORRECT? The demand for money
A) increases as real GDP increases. B) decreases as the price level increases. C) depends on the quantity of money. D) increases when the nominal interest rate rises.
Explain what inflation targeting is. What are the advantages and disadvantages of this type of monetary policy strategy?
What will be an ideal response?
If the money supply is $20 trillion and velocity is 2, then nominal GDP is
A) $2 trillion. B) $10 trillion. C) $20 trillion. D) $40 trillion.
Check clearing is important to company cash management systems, because:
a. Companies can use it to accelerate payables. b. Companies can use it to decelerate receivables. c. Companies can sweep more funds into interest-earning assets by using efficient check-clearing process. d. All of the above. e. None of the above.