Chapter 2 Review

Front

Productivity would likely increase as a result of: higher taxes, expanded production technology, decreased training programs, lower government spending.

Back

expanded production technology.

Front

Retail sales include: taxes collected, companies buying new equipment, borrowing by a business, school supplies bought by students.

Back

school supplies bought by students.

Front

Equity refers to

Back

ownership in a company or other asset.

Front

If you purchase a bond from a business, you own a part of that business.

Back

False

Front

If a company has higher earnings, less people will want to buy its stock.

Back

False

Front

When consumers increase their borrowing, interest rates tend to decline.

Back

False

Front

The phase of the business cycle in which unemployment is highest is

Back

depression

Front

Do people with poor credit ratings pay a higher interest rate to borrow money than people with good credit ratings?

Back

True

Front

In the United States, the labor force consist of all people above age ___ who are actively working or seeking work.

Back

16

Front

The money for capital projects usually comes from: personal savings, stock investments, bonds.

Back

all are correct answers