Southwest Airlines wants to raise $20 million to finance the renovation of their corporate offices, and the company wishes to raise the funds through direct finance. Which of the following methods could it use?
A) It could issue $20 million in stocks. B) It could sell $20 million in bonds.
C) It could borrow $20 million from a bank. D) It could choose either A or B.
D
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A reduction in the supply of labor will cause
A. wages to increase and employment to increase. B. wages to increase and employment to decrease. C. wages to decrease and employment to increase. D. wages to decrease and employment to decrease.
The monopolist's marginal revenue curve
A) doesn't exist. B) lies below the demand curve. C) is identical to the demand curve. D) lies above the demand curve.
Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic
a. in the short run but not in the long run. b. in the long run but not in the short run. c. both in the short run and in the long run. d. neither in the short run nor in the long run.
Medicare and Social Security are examples of
A. a free market system. B. public goods. C. programs that do not respond to rational economic incentives. D. transfer payments.