People who buy stock in a corporation such as General Electric become
a. creditors of General Electric, so the benefits of holding the stock depend on General Electric's profits.
b. creditors of General Electric, but the benefits of holding the stock do not depend on General Electric's profits.
c. part owners of General Electric, so the benefits of holding the stock depend on General Electric's profits.
d. part owners of General Electric, but the benefits of holding the stock do not depend on General Electric's profits.
c
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The circular flow of income describes the
A) flow of income from domestic firms to the nonproduction sector and back again. B) amount of money in the economy. C) sum of all injections into the economy. D) sum of all withdrawals from the economy.
The supply curve is believed to bend backward at high wage rates because
a. income effects outweigh substitution effects. b. substitution effects outweigh income effects. c. the income and substitution effects work together to create the backward bend. d. leisure time is less attractive.
A decrease in the cost of nitrogen fertilizer will
A. shift the supply curve of US corn to the right. B. shift the demand curve of US corn to the left. C. shift the demand curve for US corn to the right. D. shift the supply curve for US corn to the left.
According to this Application, a one degree Celsius rise in temperature
A) increases rich countries' exports. B) decreases poor countries' exports. C) decreases all countries' exports. D) increases poor countries' exports.