When investors use borrowed funds to pay for investments, it's called:
A. leveraging.
B. tulip mania.
C. hedging.
D. herding.
A. leveraging.
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All of the following are true regarding transfer prices except which one?
A) The transfer price is the internal firm price on an input that input-producing division charges the input-using division. B) The transfer price is the internal firm price on an input that input-using division charges the input-producing division. C) Law in many nations state that a transfer price must equal the price charged to an independent customer. D) Transfer prices can affect the taxes a firm must pay.
If we included the purchases of used goods in GDP,
a. we would be overestimating GDP b. we would be underestimating GDP c. we would be accurately measuring GDP d. the effect on GDP would vary depending on what year the goods were sold new e. we could offset any measurement problems by also including purchases of stocks and bonds
As a result of a decrease in the price of gasoline, consumers can afford to buy more gasoline for more driving trips. This is an illustration of
A. consumer sovereignty. B. the substitution effect. C. diminishing marginal utility. D. the income effect.
Savings for an economy is equal to:
A. private savings + public savings. B. public savings ? private savings. C. investment ? net exports. D. private savings ? public savings.