A firm's reinvested profit is referred to as:
a. corporate bonds.
b. dividends.
c. an annuity
d. retained earnings.
d
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A decrease in the demand for labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The error term in a multiperiod regression
A) is serially correlated. B) causes OLS to be inconsistent. C) is serially correlated, but less so the longer the forecast horizon. D) is serially uncorrelated.
The optimal air quality would be determined where the marginal social cost of improving air quality is equal to the marginal social benefit from cleaner air
a. True b. False
One country has a comparative advantage over another country in the production of a good if it
A) has a curved production possibilities curve and the other country has a linear production possibilities curve. B) has a linear production possibilities curve and the other country has a curved production possibilities curve. C) is a lower opportunity cost producer of the good. D) has lower fixed costs than the other country.