Answer:
False
Explanation:
Purchasing power is related to real income and not to nominal income. Even though workers had a $10 increase in their average nominal income, due to the effects of inflation, that increase does not necessarily reflect an improve in purchasing power.
The statement is false.
Answer:
d. The potential exists for agency conflicts between stockholders and managers.
Explanation:
- A problem of the agency is a conflict of the interest of relationships where one party is expected to act in another best interest and usually refers to the conflicts of the interest between the companies management and the stockholders.
Answer:
The statement is true.
Explanation:
Investment expenditure refers to the expenses incurred on account of creating capital assets.
If a good is produced but is left unsold or not used in the production process, then, they result in increased inventory, which is considered as an investment by the firm.
For the purpose of GDP accounting, unsold goods in inventory are treated as purchased by the firm from itself. As such, they form a part of investment expenditure in the accounting period.
A low deductible plan is the type of insurance that will require the driver to pay less out of pocket. If a person has a high deductible plan, the out of pocket payment would be a lot higher. A low deductible plan has much higher premiums that must be paid. The high deductible insurance has much lower premiums. After a wreck that is caused by the driver, most insurances will raise the premiums paid. Unless you with an insurance company that accident forgiveness plans. The correct answer to this question is B. Low Deductible Plan.
