Which of the following is true?
a. The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues.
b. When investors believe that a business decision by the management of a firm will increase the firm's future earnings, the price of the firm's stock will tend to rise.
c. Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects.
d. All of the above are true.
D
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Figure 3-4
Which of the following would make point Q in Figure 3-4 attainable?
A. Full-employment policies B. A technological advance strictly applicable to the production of apples C. An increase in land available for agricultural use D. A transfer of available resources from apples to wheat production
Constant returns to scale (CRS) implies ________
A) constant returns to labor B) constant returns to capital C) increasing marginal products D) variable total factor productivity E) diminishing marginal products
A change in the money wage rate shifts...
What will be an ideal response?
If the stock market booms and people feel wealthier (in a closed economy), then the real interest rate ________ and investment ________.
A. rises; declines B. falls; declines C. rises; increases D. falls; increases