Question 1

Since 1980,inventory investment has

Accepted Answer

A)  always been positive.
B)  always been negative.
C)  been both positive and negative.D) A) and B)
E) None of the above

Question 2

When savings is zero,I is

Accepted Answer

A)  Zero
B)  100
C)  200
D)  820
E)  1,040F) None of the above
G) All of the above

Question 3

The MPS is

Accepted Answer

A)  .25.
B)  .5.
C)  .75.
D)  .1.E) None of the above
F) B) and D)

Question 4

-When disposable income is $1 trillion,how much is C?

Accepted Answer

The answer of 
-When disposable income is $1 trillion,how much...

Question 5

Which statement is true?

Accepted Answer

A)  The capacity utilization rate for manufacturing firms usually ranges from 80 to 85 percent.
B)  Net investment can be negative.
C)  The most important determinant of the level of investment is the sales outlook.
D)  All of the statements are true.E) A) and C)
F) B) and D)

Question 6

Which of the following statements is false?

Accepted Answer

A)  Nearly all of the money that flows into the stock market goes directly to the corporation issuing the stock and ends up as new plant and equipment.
B)  New stock offerings and initial public offerings raise about $200 billion a year,most of which finances capital spending.
C)  Nearly all of the money that flows into the stock market buys stock that has already been issued.
D)  Bondholders lend money to a company and are therefore creditors rather than owners.E) B) and D)
F) B) and C)

Question 7

-When disposable income is $2 trillion,how much is I?

Accepted Answer

$.75 trill...

Question 8

A sole proprietorship

Accepted Answer

A)  is subject only to limited liability.
B)  experiences little difficulty in accumulating and acquiring financial capital.
C)  is simply an individual in business for himself or herself.
D)  is very similar to a corporation in its legal status.
E)  has infinite life unless it goes bankrupt or is merged.F) C) and E)
G) A) and B)

Question 9

If a corporation goes bankrupt,its stockholders will lose

Accepted Answer

A)  only the value of their stock.
B)  the value of their stock plus any other business assets which they may own.
C)  the value of their stock plus any other personal assets which they may own.
D)  the value of their stock plus any other business and personal assets which they may own.E) A) and C)
F) None of the above

Question 10

The business firm of Lennon,Harrison,McCartney and Starr had a level of inventory of $150 million on January 1,1967 and ended up with an inventory of $250 million on December 31,1967.The company's expenditures on new plant and equipment for the year was $50 million,while its depreciation on the plant and equipment was $20 million.
-How much was the firm's net investment?

Accepted Answer

The answer of The business firm of Lennon,Harrison,McCartney and Starr...

Question 11

Gross investment refers to

Accepted Answer

A)  private investment plus public investment.
B)  net investment plus replacement investment.
C)  net investment after it has been "inflated" for changes in the price level.
D)  net investment plus net exports.E) B) and C)
F) A) and D)

Question 12

An economy is enlarging its stock of capital goods

Accepted Answer

A)  when net investment exceeds gross investment.
B)  when gross investment exceeds depreciation.
C)  only when added investment exceeds depreciation.
D)  when depreciation exceeds gross investment.E) None of the above
F) C) and D)

Question 13

Suppose you own $175,000 worth of personal property,$15,000 in U.S.government bonds;a $20,000 savings account,a $50,000 CD,and $5,000 of California Edison stock.If California Edison goes bankrupt,the most you could lose is

Accepted Answer

A)  $5,000.
B)  $75,000.
C)  $90,000.
D)  $265,000.E) A) and D)
F) All of the above

Question 14

-When disposable income is 1,500,how much is savings?

Accepted Answer

The answer of 
-When disposable income is 1,500,how much is...

Question 15

In the year 2929 our gross investment will be $5.0 trillion and our net investment will be $4.2 trillion.In 2929 our capital stock will

Accepted Answer

A)  increase by $5.0 trillion.
B)  increase by $4.2 trillion.
C)  increase by $0.8 trillion.
D)  increase by a number between $5.0 trillion and $4.2 trillion.E) B) and C)
F) A) and C)

Question 16

When disposable income is 2,000,saving is

Accepted Answer

A)  -100.
B)  0.
C)  100.
D)  400.E) B) and C)
F) None of the above

Question 17

Gross investment = ____________ + _______.

Accepted Answer

net invest...

Question 18

If your firm had $300,000,the going rate of interest on business loans was 12 percent and your firm's expected profit rate was 17 percent,what would you do with this money?

Accepted Answer

A)  Keep it in the bank.
B)  Lend it to a competitor.
C)  Use it to finance your own expansion.D) A) and B)
E) All of the above

Question 19

Given the information in the table below,find inventory investment for 2007.

Accepted Answer

The answer of Given the information in the table below,find...

Question 20

Which is the most accurate statement?

Accepted Answer

A)  Most investment in the U.S.involves stock market speculation.
B)  Investment involves sacrifice.
C)  Net investment during recession years is usually negative.
D)  Investment is carried out mainly by individual savers.E) A) and C)
F) A) and D)

Exam 6: The Business Investment Sector

Which is the most accurate statement?

Correct Answer
verified

Gross investment = ______ + _.

Correct Answer
verified
net invest...
View Answer

When savings is zero,I is

Correct Answer
verified

Given the information in the table below,find inventory investment for 2007.

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Which statement is true?

Correct Answer
verified

If your firm had $300,000,the going rate of interest on business loans was 12 percent and your firm's expected profit rate was 17 percent,what would you do with this money?

Correct Answer
verified

Since 1980,inventory investment has

Correct Answer
verified

A sole proprietorship

Correct Answer
verified

Correct Answer
verified

If a corporation goes bankrupt,its stockholders will lose

Correct Answer
verified

Gross investment refers to

Correct Answer
verified

In the year 2929 our gross investment will be $5.0 trillion and our net investment will be $4.2 trillion.In 2929 our capital stock will

Correct Answer
verified

-When disposable income is $2 trillion,how much is I?

Correct Answer
verified
$.75 trill...
View Answer

Suppose you own $175,000 worth of personal property,$15,000 in U.S.government bonds;a $20,000 savings account,a $50,000 CD,and $5,000 of California Edison stock.If California Edison goes bankrupt,the most you could lose is

Correct Answer
verified

When disposable income is 2,000,saving is

Correct Answer
verified

An economy is enlarging its stock of capital goods

Correct Answer
verified

-When disposable income is 1,500,how much is savings?

Correct Answer
verified

-When disposable income is $1 trillion,how much is C?

Correct Answer
verified

The MPS is

Correct Answer
verified

Exam 6: The Business Investment Sector

Which is the most accurate statement?

Correct AnswerverifiedShow Answer

Gross investment = ____________ + _______.

Correct Answerverifiednet invest...View AnswerShow Answer

When savings is zero,I is

Correct AnswerverifiedShow Answer

Given the information in the table below,find inventory investment for 2007.

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

If your firm had $300,000,the going rate of interest on business loans was 12 percent and your firm's expected profit rate was 17 percent,what would you do with this money?

Correct AnswerverifiedShow Answer

Since 1980,inventory investment has

Correct AnswerverifiedShow Answer

A sole proprietorship

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a corporation goes bankrupt,its stockholders will lose

Correct AnswerverifiedShow Answer

Gross investment refers to

Correct AnswerverifiedShow Answer

In the year 2929 our gross investment will be $5.0 trillion and our net investment will be $4.2 trillion.In 2929 our capital stock will

Correct AnswerverifiedShow Answer

-When disposable income is $2 trillion,how much is I?

Correct Answerverified$.75 trill...View AnswerShow Answer

Suppose you own $175,000 worth of personal property,$15,000 in U.S.government bonds;a $20,000 savings account,a $50,000 CD,and $5,000 of California Edison stock.If California Edison goes bankrupt,the most you could lose is

Correct AnswerverifiedShow Answer

When disposable income is 2,000,saving is

Correct AnswerverifiedShow Answer

An economy is enlarging its stock of capital goods

Correct AnswerverifiedShow Answer

-When disposable income is 1,500,how much is savings?

Correct AnswerverifiedShow Answer

-When disposable income is $1 trillion,how much is C?

Correct AnswerverifiedShow Answer

The MPS is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Gross investment = ______ + _.

Correct Answer
verified
net invest...
View Answer

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verified

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Correct Answer
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Correct Answer
verified
$.75 trill...
View Answer

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verified

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Correct Answer
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