Exhibit 10-2 -At the Equilibrium Level of GDP in Exhibit 10-2, Leakages

question 51

Multiple Choice

Exhibit 10-2

-At the equilibrium level of GDP in Exhibit 10-2, leakages equal

• A)$1.4 trillion
• B)$1.3 trillion
• C)$1.5 trillion
• D)$1.0 trillion
• E)$1.1 trillion

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Definitions:

Franchise

A business arrangement between an owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is liable for its debts, and one or more limited partners, who contribute capital and share in profits but have limited liability.

General Partner

An owner of a partnership who is responsible for its management and is personally liable for its debts.

Limited Partner

An investor in a partnership who is not involved in day-to-day management and whose liability is limited to the amount invested.