The stock market provides two functions for corporate financing: reducing investors' risk and setting the prices of stocks

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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When will an industry's long-run supply curve be horizontal at firms' break-even price?

a. When expansion of the industry allows new input markets to develop. b. When some firms are more efficient than others. c. When specialized skills play a significant role in production. d. When firms are identical and there is no factor-price effect.

Economics

An important insight of international trade theory is that when two countries engage in voluntary trade

A) one country always benefits at the expense of the other. B) it is almost always beneficial to both countries. C) it only benefits the low wage country. D) it only benefits the high wage country. E) it is almost never beneficial to both countries.

Economics

Economic discrimination against minorities exists when

A) minorities have less education and training than whites. B) minorities are paid less than whites on average. C) minorities are paid less than whites with the same education, experience, and training. D) minorities are in different occupations than whites.

Economics

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the equilibrium price will change to:

A. $8. B. $4. C. $12. D. $14.

Economics