Assume the price of product Y (the quantity of which is on the vertical axis) is $15 and the price of product X (the quantity of which is on the horizontal axis) is $3. Also assume that money income is $60. The absolute value of the slope of the
resulting budget line:
A. is 5.
B. is 1/5.
C. is 4.
D. is 20.
Answer: B
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Conflict resolution of the stockholder-lender conflict in larger banking-oriented firms is most effectively accomplished by
A) financial intermediation (monitoring). B) financial intermediation (ownership consolidation). C) corporate governance. D) None of the above.
If MPC = 0.8 and the economy is in equilibrium $500 below full-employment equilibrium, how much should government spending change to achieve full employment?
a. ?100. b. +80. c. ?80. d. +500. e. +100.
During the last two centuries, after adjustment for inflation,
A) both corporate stocks and bonds have yielded an average annual real rate of return of about 3 percent. B) corporate stocks have yielded an average annual real return of approximately 7 percent, compared to an average real return of about 3 percent for bonds. C) corporate bonds have yielded an average annual real return of approximately 7 percent, compared to an average real return of about 3 percent for corporate stocks. D) both corporate stocks and bonds have yielded an average annual real rate of return of about 7 percent.
Which company bilked its stockholders and allowed their employees' pension funds to be wiped out?
A. Arthur Andersen B. HealthSouth C. Adelphia D. Enron