Dividends are
A) financial securities which represent ownership in a corporation.
B) the yearly payments associated with bonds.
C) the interest rate paid on shares of stock.
D) payments by a corporation to its shareholders.
Answer: D
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If you burn your trash in the backyard in spite of regulations against it, then you are
A) acting economically irrationally and creating a social cost. B) acting rationally and creating a positive externality. C) saving landfill space and creating a social benefit. D) avoiding the private costs associated with disposing your trash some other way and creating a social cost.
In response to a negative income tax, the substitution of leisure for income could be great enough to reduce total income
a. True b. False
The currency of the United States is
a. backed dollar for dollar by gold b. backed dollar for dollar by GDP (that is, by goods) c. not backed by anything (neither gold nor fool's gold) d. backed by the government's currency reserves in the vaults at Fort Knox e. backed by gold only for coin, not for paper bills
Which of following would most likely cause a firm to shut down?
a. the ATC curve moves further above P
b. the MC curve moves below P
c. the AVC curve moves above P
d. the ATC curve moves below P