The dividends that stockholders receive are:
A. paid before all other obligations of the company are met.
B. distributions from profits.
C. always equal to the average amount of interest paid to a bond holder, adjusting for the value of the holdings.
D. fixed by contract and paid annually.
Answer: B
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
The Interstate Commerce Commission regulated the trucking industry for many years in order to
a. shield the railroads from competition in trucking b. prevent economic profits from being made c. regulate the truck monopoly in the interests of the consumer d. prevent economies of scale from occurring e. punish truck drivers for unionizing
That some firms are engaged in more than one type of business is explained, in some cases, by
a. moral injunctions such as the Golden Rule. b. the existence of charitable organizations. c. government regulations that discourage the internalization of externalities. d. the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.
If the economy is slipping into a recession, which of the following would be an appropriate fiscal policy?
A) an increase in the money supply and a decrease in interest rates B) a decrease in government purchases C) a decrease in taxes D) a decrease in oil prices