If a corporation earns a profit, how do owners of the firm share in the profit?
A) by selling any bonds or stocks owned and realizing a capital gain
B) by raising the interest rate on bonds
C) through coupon payments on that firm's bonds
D) through dividend payments on shares of that firm's stock
D
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One reason more sport utility vehicles (SUVs) are driven in the United States than in Europe is
A) different marginal rates of substitution. B) different marginal rates of transformation. C) the United States hasn't had a recession since 2000-2001. D) Either A or B
If there is a permanent increase of 5% in the domestic money supply, then which of the following will be true in the long run?
a. Prices will decrease by 5%. b. Prices will increase by 4%. c. The home country currency will depreciate by 5%. d. The home country currency will appreciate by 4%.
The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of
A. variable imports. B. changes in the price-level. C. income taxes. D. all of the above.
Economists regard expenditures on education as investments because:
A. they are subject to tax deductions at the same rate as are expenditures on machinery and equipment. B. education is economically beneficial at the same time it is being acquired. C. such expenditures are current costs that are intended to enhance future earnings. D. they differ from expenditures on health and worker mobility.