GM decides to build a new plant using retained earnings. All of the following are true except
A. GM is engaging in saving on behalf of its shareholders.
B. GM stock appreciates in value.
C. GM is avoiding experiencing opportunity costs.
D. GM's tangible capital will increase as a result.
Answer: C
You might also like to view...
If the money demand function is given by Md = 10 + 0.2Y ? 10r then a 10-unit increase in the quantity of money will cause the LM schedule to shifts to
a. to the right by 10 units. b. the right by 50 units. c. to the left by 40 units. d. to the left by 50 units. e. to the right by 40 units.
If mayonnaise and Miracle Whip are substitutes, then which of the following would increase the demand for Miracle Whip?
a. a decrease in the price of Miracle Whip b. an increase in the price of mayonnaise c. a decrease in the price of mayonnaise d. Both a and b are correct.
Great Basin National Park, the only national park wholly within the borders of Nevada, occupies 77,180 acres and contains 42 known caves. About 90,000 people visit the park each year. It has 25 permanent staff who, with the seasonal staff, collect $280,00 in fees a year, mostly for the 2,400 cave tours. The park also has about 80 volunteers who contribute 9,400 hours of work a year. Because the park surveys for springs in the 25 watersheds, the park service does not burn any acreage, which is part of standard maintenance in some parks.Some of the data are flow measurements and some are stock measurements. An example of a flow measurement is:
A. caves in the park. B. staff positions in the park. C. cave tours given. D. acres in the park.
The income-expenditure identity for a closed economy is:
A. Y + G = C + I ? NX. B. Y = C + I + G. C. Y = C + I + G + NX. D. Im ? Ex = C + I.