If an Economy Increases the Amount of Roundabout Production Today

question 130

Multiple Choice

If an economy increases the amount of roundabout production today,

• A)more consumer goods can be produced in the present
• B)fewer consumer goods can be produced in the future
• C)more capital accumulates
• D)less capital accumulates
• E)fewer capital goods can be produced in the future

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Definitions:

Contributed Capital

The total value of cash and other assets received from shareholders in exchange for stock.

Accounting Records

Documentation and information that capture all the financial transactions of a business or an individual.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.