Which of the following statements about stock-issuing firms is FALSE?
A. Firms that pay dividends cannot lose money for their investors because the stockholders can at least count on the dividend payment every year.
B. Firms that issue new stock a second time are making a secondary public offering.
C. Firms that issue stock are participating in the equity credit channel.
D. Firms that issue stock for the first time do so through an initial public offering, handled by an investment bank.
Answer: A
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An individual buys shares in a mutual fund, which uses the proceeds to buy corporate stocks and bonds. This is part of the process by which
A) total product becomes unequal to total expenditures. B) firms release goods to make them available to consumers. C) firms obtain investment goods that consumers relinquish claims to. D) consumers make an "inventory investment" in goods to be purchased in the future.
In industries in which strong network effects exist, which industry structure is likely to emerge?
A) perfect competition B) monopoly C) monopolistic competition D) oligopoly
Keynesian policies are ineffective at combating stagflation because stagflation is caused by: a. budget surpluses
b. decreases in aggregate supply. c. trade deficits. d. decreases in aggregate demand. e. budget deficits.
Changes in short-run total costs result from changes in
A. The price elasticity of demand. B. Profit. C. Variable costs. D. Fixed costs.