In a Private Closed Economy, Aggregate Expenditures Will Equal GDP

question 180

Multiple Choice

In a private closed economy, aggregate expenditures will equal GDP where:

• A)consumption equals investment.
• B)consumption plus investment equals aggregate expenditures.
• C)planned investment equals saving.
• D)disposable income equals consumption minus saving.

Identify the benefits and potential problems of employee involvement in decision making.

Understand the significance and use of tacit knowledge in the decision-making process.

Identify factors that contribute to escalation of commitment and ways to minimize it.

Describe the stages of the creative process and its role in decision making.

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Definitions:

Days' Sales in Receivables

A financial ratio that measures the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

Accounts receivable represents money owed to a company by its customers for goods or services delivered on credit.

Inventory Turnover

A measure of the number of times inventory is turned into goods sold during the year, computed by dividing the cost of goods sold by the average inventory.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components that a company uses in the production of the items it sells, as well as the management of finished products available for sale.