Refer to Figure 15-9. What is the economically efficient output level?
A) 600 units B) 800 units C) 940 units D) 1160 units
C
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According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________
A) unemployment might be zero B) inflation might be stable C) expected inflation must be stable D) price shocks must be zero E) none of the above
An example of a capital resource is: a. stock in a computer software company
b. a bond issued by a company selling electric generators. c. a dump truck. d. an employee of a moving company.
Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?
a. opportunity cost b. earnings of employees c. economic profit d. interest earnings of corporate bondholders
Which of the following statements is true?
A. The effectiveness of a board of directors in monitoring managers is enhanced by appointing members from the firm who are well-informed about the management problems facing the firm. B. Shareholders as a group have little or no ability to force managers to pursue maximization of the firm's value. C. Reducing the amount of debt financing can reduce divergence between the shareholders' interests and the manager's interests. D. Equity ownership by managers is thought to be one of the most effective corporate control mechanisms. E. All of the above are true.