11. business investment in the decade of the 1990\'s _________________. a) decli
ID: 1185549 • Letter: 1
Question
11. business investment in the decade of the 1990's _________________.
a) declined dramatically as foreign competition forced U.S. companies to shift production to foreign countries.
b) declined because the U.S. is losing its competitive edge in world markets
c) increased but only because of the growth of the service sector
d) increased dramatically as businesses adopted emerging information technology (computerization).
12. Which of the following would most likely cause consumption to increase?
a) the stock market crashes
b) a price ceiling is placed on the interest rate that credit card companies can charge
c) inflationary expectations rise
d) the market for consumer durables becomes saturated
13. business firms oftentimes invest in plant and equipment during recession years for each of the following reasons except:
a) interest rates are usually lower.
b) it has been planned years ahead.
c) it replaces worn-out plant and equipment
d) it is needed because capacity may be fully utilized
e) none of the above is correct.
14. Which of the following statements is false?
a) if people feel wealthier because their stock portfolios have risen, they tend to increase their consumption of goods and services
b) one of the many factors that caused the Great Depression was that by 1930 the market for consumer durables was saturated
c) when people expect a recession they tend to postpone major purchases until times get better
d) when people expect inflation they often buy consumer goods before the price goes up
e) none of these statements is false.
15. The U.S. capacity utilization rate is usually between
a) 10 to 30 percent
b) 30-50 percent
c) 50 to 70 percent
d) 70- 90 percent
e) 90-100 percent
16. The lunch you buy at your college cafeteria is classified as _______________.
a) a consumer durable
b) a consumer nondurable
c) a service
d) either a consumer nondurable or a service because it fits into both categories
17. gross investment _________________.
a) plus depreciation equals net investment
b) minus depreciation equals net investment
c) plus net investment equals depreciation
d) equals net investment minus depreciation
e) none of the above is correct
18. Which statement is most accurate?
a) most Americans save for the same reason.
b) Poor people, on the average, save higher percentage of their income than the rich.
c) the permanent income hypothesis has had a virtually perfect record in predicting consumer behavior.
d) the tremendous expansion of bank credit cards, installment credit, and consumer loans has contributed substantially to the consumer binge of the last dozen years.
19. each of the following is business investment except ________________.
a) investment in new inventory
b) investment in new plant
c) investment in new equipment
d) investment in new, residential houseing
e) there are no exceptions. All of the above are examples of business investment.
20. The lever of consumption ________________ as the stock of liquid assets in the hands of the consumer rises and it ______________ as the level of disposable income rises.
a) rises, rises
b) falls, falls
c) rises, falls
d) falls, rises
Explanation / Answer
11,a 12,a 13,c 14,c 15,b 16,b 17,d 18,c 19,a 20,b
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.