Technology and Capital Are Considered Two Separate Factors of Production

question 67

True/False

Technology and capital are considered two separate factors of production.

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Definitions:

Eurodollar Market

The debt market created when foreign banks with eurodollar deposits lend those funds.

European Banks

Financial institutions based in Europe which engage in all kinds of banking services including deposits, loans, and investments.

Translation Risk

The gain or loss on the value of assets and liabilities held in another country that results from variation in exchange rates. Generally relatively meaningless as long as the foreign operation is not liquidated or sold. Therefore not generally taxable.

Consolidated Income Statements

A financial statement that aggregates the income statements of a parent company and its subsidiaries to show the total earnings and financial performance of the entire group.