A borrower defaults on a loan when he stops making payments on the loan
Indicate whether the statement is true or false
TRUE
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The processes a firm uses to turn inputs into outputs of goods and services are the firm's
A) production function. B) technology. C) total factor productivity. D) manufacturing ideology.
The term "depreciation" in the national income accounts refers to
a. the adjustment of GDP for inflation. b. plant and equipment "used up" in producing current output. c. citizenship differences among income recipients. d. government transfer payments minus tax revenues.
A U.S. retailer buys shoes from an Italian company. The Italian firm then uses all of the revenues to buy leather from the U.S. These transactions
a. increase both U.S. net exports and U.S. net capital outflow. b. decrease both U.S. net exports and U.S. net capital outflow. c. increase U.S. net exports and do not affect U.S. net capital outflow. d. None of the above is correct.
In an economy with lump-sum taxes and no international trade, if the marginal propensity to consume is 0.8, which of the following is true?
a) when consumption increases by $5, investment increases by a maximum of $1 b) when consumption increases by $5, savings increase by a maximum of $1 c) when investment increases by $1, income increases by a maximum of $5 d) when investment increases by $1, consumption increases by a maximum of $5 e )when income increases by $1, investment increases by a maximum of $5