All of the following are characteristics of a proprietorship EXCEPT
A) the business is owned by one individual.
B) one person is responsible for all the debts of the firm.
C) one person gets all of the profits.
D) the firm can form a corporation to protect itself against the debts.
Answer: D
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If a country increases its savings rate, the steady-state equilibrium level of:
A) GDP will increase. B) investment will decrease. C) capital stock will decrease. D) efficiency units of labor will increase. Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different saving rates. The savings rate is higher in country A in comparison to country B.
Goods that have been produced but not yet sold are referred to as
A) capital goods. B) inventories. C) understocks. D) pre-sold goods.