Common stock in a corporation represents a(n)
a. loan to the business
b. ownership interest in the business
c. investment in the business with a guaranteed interest return
d. investment in the business with a guaranteed profit return
e. gift to the corporation
B
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According to mainstream macroeconomists, U.S. macro instability has resulted from
A. adherence by the Fed to a monetary rule. B. wide fluctuations in net exports. C. changes in investment spending. D. government's attempts to balance its budget.
An economy's production function is Y = A , and the economy's total output in equilibrium is $90 billion. Total capital income in this economy is ________
A) $27 billion B) $30 billion C) $21 billion D) $70 billion E) none of the above
Scarcity limits the volume of goods that an economic system can produce but does not limit the production of services.
Answer the following statement true (T) or false (F)
If a decision maker uses marginal analysis, then the relevant costs are the
a. full costs of a particular activity or product. b. fixed costs which do not vary with the extra activity or output. c. profits obtained on the activity or product. d. average costs for a particular activity or product. e. additional costs of a particular activity or product.