A for-profit company that buys real capital and leases it to a non-profit company can
A. charge a higher than market price to the non-profit company.
B. offer the capital at a lease rate higher than it would cost the non-profit to buy the capital itself.
C. add a net gain to the economy because one or both companies gain and no one loses.
D. depreciate the leased capital to lower the firm's tax liability.
Answer: D
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Which of these statements about poverty in the United States is correct?
a. Ownership of capital is more equally distributed than income earned from labor. b. Poverty in the United States has increased dramatically in the last 20 years. c. Individuals who are less productive will earn lower incomes.
Full employment is considered a major economic goal because: a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment. c. the opportunity cost of unemployment is lost production. d. profit maximization of firms can only occur when there is full employment. e. inflation will be lower when full employment is achieved.
The aggregate demand curve:
a. shows the level of real GDP purchased in the economy at different possible price levels during a period of time. b. shows the level of real GDP produced in the economy at different possible price levels during a period of time. c. shifts to the left whenever there is an increase in aggregate expenditures. d. slopes upward.
Which of the following is an example of a surplus item on the balance of payments?
A) private gifts to foreign residents B) public gifts to foreign residents C) interest receipts from foreign residents D) purchases of gold from foreign residents