Among the factors that determine the price of a share of stock in a firm is
A. dividends people may expect will be paid in the future.
B. the time to maturity of a bond.
C. the number of years the firm has existed.
D. the number of workers the firm has.
Answer: A
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The riskiness of an asset is measured by
A) the magnitude of its return. B) the absolute value of any change in the asset's price. C) the standard deviation of its return. D) risk is impossible to measure.
In the long run, a perfectly competitive firm is expected to generate either an economic profit or an economic loss
a. True b. False Indicate whether the statement is true or false
Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
A) P = $65; Q = 14
B) P = $70; Q = 13
C) P = $80; Q = 11
D) P = $85; Q = 10
The principal mechanism for directly changing the reserves of the banking system is:
A. The discount rate. B. The reserve requirement. C. Open-market operations. D. The federal funds rate.