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Financial capital are amount of money or fund which are available for investment. Fund used on expenditure on manufacturing equipments are known as investment expenditure
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Economists differentiate between these types of capital; physical capital, human capital and financial capital. Which of...
The way economists define investment, which one of the following statements about investment is false? Investment incl...
The way economists define investment, which one of the following statements about investment is false? Investment includes changes in inventories. Investment includes the purchase of new machinery and capital equipment. Investment includes the purchase of intermediate goods used by firms in the production process. Investment is an expenditure.
What is a market? Differentiate between the following types of markets: physical asset market versus financial...
What is a market? Differentiate between the following types of markets: physical asset market versus financial asset markets, spot markets versus futures markets, money markets versus capital markets, primary markets versus secondary markets, and public markets versus private markets.
Which of the following is not determined in the aggregate demand (AD) and aggregate supply (AS)...
Which of the following is not determined in the aggregate demand (AD) and aggregate supply (AS) model? output/income/employment real interest rates the price level recessionary or inflationary gaps real GDP Question 5 (2.5 points) Saved To an economist, which of the following is an example of a (physical) investment? expenditures made on government bonds purchases of new physical assets, such as new plant and equipment, by firms the supply of loanable funds the purchase of an IBM stock by a...
01 1. Which of the following can be measured by the level of real GDP per person? a. Productivity and the standard o...
01 1. Which of the following can be measured by the level of real GDP per person? a. Productivity and the standard of living. b. Productivity but not the standard of living. c. The standard of living but not productivity. d. Neither the standard of living nor productivity. 2. Human capital is the a. knowledge and skills that workers acquire through education, training, and experience. b. stock of equipment and structures that is used to produce goods and services. c....
1. TRUE/FALSE( 1 mark per question, 20 marks in total) [1) An economy's income is the...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) [1) An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 2) GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. [3) If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
4. Shifts in production possibilities Suppose Germany produces two types of goods: agricultural and capital. The...
4. Shifts in production possibilities Suppose Germany produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and airplanes, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. Note: Select either end of the curve on the graph to make the endpoints appear. Then...
Summarize Article below: The term capital investment has two usages in business. First, capital investment refers...
Summarize Article below: The term capital investment has two usages in business. First, capital investment refers to money used by a business to purchase fixed assets, such as land, machinery, or buildings. Secondly, capital investment refers to money invested in a business with the understanding that the money will be used to purchase fixed assets, rather than used to cover the business's day-to-day operating expenses. For example, to purchase additional capital assets a growing business may need to seek a...
1. A self-employed woman marries the man she has been paying to do her accounting. After...
1. A self-employed woman marries the man she has been paying to do her accounting. After they marry they decide there is no point continuing to write a check to him since they are now one-household. What effect does this have on GDP? Select one: a. None, since only their legal status changes and the same amount of productive activity is being done. b. GDP decreases because his accounting services were an intermediate good and are now a final good....
True/False (T/F) _____1) The primary advantage of equity capital is that it does not have to...
True/False (T/F) _____1) The primary advantage of equity capital is that it does not have to be repaid with interest. _____2) The most common source of equity funds used to start a small business is an SBA loan. _____3) If an entrepreneur is not willing to risk funds in a business venture, other potential investors and lenders are not likely to provide capital either. _____4) Venture capital companies reject 90% of the proposals they receive because they don't meet the...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as its total) expenditure because every has a buyer and a seller every transaction ket value of all final goods and services produced by a country's citizens in a given period of time p) If'nominal GDP is $10,000 and real GDP is $8,000 then the GDP deflator is 125. thines equal, in countries with higher levels of real GDP per person, life expectancy and literacy...
The way economists define investment, which one of the following statements about investment is false? Investment includes changes in inventories. Investment includes the purchase of new machinery and capital equipment. Investment includes the purchase of intermediate goods used by firms in the production process. Investment is an expenditure.
Which of the following is not determined in the aggregate demand (AD) and aggregate supply (AS) model? output/income/employment real interest rates the price level recessionary or inflationary gaps real GDP Question 5 (2.5 points) Saved To an economist, which of the following is an example of a (physical) investment? expenditures made on government bonds purchases of new physical assets, such as new plant and equipment, by firms the supply of loanable funds the purchase of an IBM stock by a...
01 1. Which of the following can be measured by the level of real GDP per person? a. Productivity and the standard of living. b. Productivity but not the standard of living. c. The standard of living but not productivity. d. Neither the standard of living nor productivity. 2. Human capital is the a. knowledge and skills that workers acquire through education, training, and experience. b. stock of equipment and structures that is used to produce goods and services. c....
1. TRUE/FALSE( 1 mark per question, 20 marks in total) [1) An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 2) GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. [3) If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
4. Shifts in production possibilities Suppose Germany produces two types of goods: agricultural and capital. The following diagram shows its current production possibilities frontier for wheat, an agricultural good, and airplanes, a capital good. Drag the production possibilities frontier (PPF) on the graph to show the effects of a long drought that reduces the amount of water available for farmers to use for irrigation. Note: Select either end of the curve on the graph to make the endpoints appear. Then...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as its total) expenditure because every has a buyer and a seller every transaction ket value of all final goods and services produced by a country's citizens in a given period of time p) If'nominal GDP is $10,000 and real GDP is $8,000 then the GDP deflator is 125. thines equal, in countries with higher levels of real GDP per person, life expectancy and literacy...
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