Which of the following indicates why the role of vigilant investors is important for the efficient operation of an economy?
a. These investors generally serve on the boards of directors of corporations.
b. These investors tend to buy and sell stocks in a way that provides feedback to management about the quality of its decisions.
c. These investors help allocate capital efficiently among investment projects.
d. Both b and c are true.
D
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Nominal GDP increases
A) only if total production increases. B) only if prices increase. C) if either prices and/or total production increase. D) only if the productivity of resources increase. E) only if depreciation decreases.
Why do few avocados rot, even though in some seasons of the year far more avocados are harvested than in other seasons of the year?
A) Consumers realize it would be inefficient to let avocados rot. B) Growers vary their advertising efforts with the season of the year. C) Prices fluctuate sharply as supplies increase or decrease. D) The taste for avocados varies proportionately to the supply.
Even if college imparted no additional knowledge to its graduates, they are likely to earn more because _____
a. firms like to say they only hire college graduates b. of the connections that one makes in college c. a college degree sends a signal of innate ability to employers d. their parents help them get a job
In the U.S., taxes are paid on one's _____ gains/returns. Therefore, a _____ inflation rate encourages more saving
Fill in the blank(s) with correct word