If an expansion proposal is accepted, allowing an otherwise idle (and useless) machine with a market value and book value of $2,000 to be utilized, should it be recorded as a cash outflow, and if so, how much?

Janelle spends all of her $40 income on songs from iTunes ($1 each) and applications ($4 each) for her iTouch. What is her budget equation?

A) $1 × Qsong - $5 × Qapp = Y B) Qsong = 10 - 4 × Qapp C) $40 + $1 × Qsong = $4 × Qapp D) Qapp = 10 - 1/4 × Qsong

Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators

Indicate whether the statement is true or false