E14 - Lesson 3 – Capital Investment and Profits…Fuels that Make Our Economy Run
Q.1
Which of the following are not one of the four keys points that students are asked to take away from Lesson 3?
Capital investment and profits are essential to business development and growth.
Businesses need profits for them to invest in their continued growth and to pay shareholders.
The great majority of new investment comes from government, not the private sector.
While some think that, in general, business profits are excessive, the amount of profit available for business growth is usually quite limited.
Q.2
As noted in Lesson 3, which of the statements about the total amount of private and public sector investment is true?
Of the $2.3 trillion in total public and private sector US investment in 2015, about 79% was made by the private sector.
Almost two thirds of all public and private sector investment in the US is made by government.
The proportion of public and private sector investment is about the same for both government and the private sector.
No information exists about the amount of private sector and government sector investment.
Q.3
How is the business term “Break Even” defined in Lesson 3?
When a business breaks even, it means that it is only covering its existing costs and nothing more.
The breakeven point is when the amount of money received by a business is equal to all of its payroll costs.
When the amount of a business’s net profits equals the amount of all new buildings and equipment that it has purchased, that is called the breakeven point.
The breakeven point is when a company has just enough cash to pay dividends to its shareholders.
Q.4
According to data from the US government’s Bureau of Economic Analysis, the amount of total corporate profits that were paid out in income taxes in 2015 was?
About 5% of total corporate profits.
About 26% of total corporate profits.
About 55% of total corporate profits.
About 68% of total corporate profits.
Q.5
According to data from the US government’s Bureau of Economic Analysis, the amount of total corporate profits that were paid out to shareholders in 2015 was?
About 5% of total corporate profits.
About 44% of total corporate profits.
About 58% of total corporate profits.
About 75% of total corporate profits.