A stock is purchased either for the expected gain in the price of the stock, for the dividends that the stock may pay, or both.
Answer the following statement true (T) or false (F)
True
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Traditionally, the federal government provides disaster relief funds to flood victims so that they can rebuild their homes after a major flood
However, the government has recently denied requests to rebuild some homes that were situated in flood-prone areas. This action represents an attempt to ________ the moral hazard problem associated with building private homes in risky areas. A) enhance B) mitigate C) legalize D) support
When a firm experiences declining long-run average total costs as it produces more output, there are
A) increasing marginal returns to variable inputs. B) economies of scale. C) diseconomies of scale. D) constant returns to scale.
Since the 1980s, Wal-Mart stores have appeared in almost every community in America. Wal-Mart buys their goods in large quantities and therefore at cheaper prices. Wal-Mart also locates its stores where land prices are low, usually outside of the community business district. Many customers shop at Wal-Mart because of low prices and free parking. Local retailers, like the neighborhood drug store,
often go out of business because they lose customers. This story demonstrates that: a. consumers are boycotting local retailers. b. Wal-Mart engages in illegal acts of monopolization. c. there are diseconomies of scale in retail sales. d. there are economies of scale in retail sales. e. Wal-Mart is managed by ruthless business people.
An investment bank is a financial institution that finances federal budget deficits at very low interest rates
a. True b. False Indicate whether the statement is true or false