The Following Data Are Estimates Describing Ireland's Economy in 2006

question 40

Multiple Choice

The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices) : 2006 2007
Consumption 84,000 89,000
Government expenditure 24,000 26,000
Investment 48,000 48,000
Exports 142,000 151,000
Imports 123,000 128,000
Subsidies 1,800 1,900
Taxes 500 500
Which of the following is TRUE regarding Ireland's economy?

• A) The change in GDP from 2006 to 2007 represented a peak in the business cycle.
• B) GDP decreased from 2006 to 2007.
• C) Net exports decreased from 2006 to 2007.
• D) Consumption was 48 percent of Ireland's GDP in 2007.

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Definitions:

Lessors

Entities that lease an asset to a lessee, typically retaining ownership of the asset for the duration of the lease agreement.

Market Rent

The average rent that similar properties in the same area are fetching on the open market; used as a benchmark in lease agreements.

Fair Value

The proceeds from selling an asset or the outlay to relocate a liability in a planned interaction among market stakeholders on the benchmark date.

Capital Lease Disclosures

Financial reporting requirements that detail the specifics of lease agreements classified as capital leases, including future payment obligations and interest expenses.