The number of shares of Biggie Corporation stock outstanding in 2013 was 100 million. In 2013, Biggie stock paid a dividend of $2.50 per share and its dividend yield was 2 percent. If the price-earnings ratio is 20, then Biggie's total earnings in 2013 amounted to
a. $15.6 million.
b. $250 million.
c. $160 million.
d. $625 million.
d
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The federal government incentive to support special-interest groups (steel, auto, drug, environment) at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers) occurs
(a) only when the benefits that accrue to the special-interest group exceed the costs imposed on others. (b) when nonspecial-interest voters are unconcerned or uninformed about the issue, and campaign funds are readily available from the special-interest group. (c) only if the government action is efficient. (d) only if the government action will reduce the monopoly power of business or labor, and thereby lead to an improvement in the general welfare.
Economists say that a firm has a normal profit when:
a. it earns a return of at least 10 percent. b. its accounting profit is positive. c. it can pay all its variable costs. d. its economic profit is zero.
According to the story, if __________ in the software and related services sector increases by $15 billion, real GDP will increase by __________
a) investment; $30 billion b) consumption; $30 billion c) consumption; $2 billion d) investment; $2 billion
When the price of labor increases, the substitution effect will ________ the quantity of labor demanded and the output effect will ________ it
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease