Answer the following statements true (T) or false (F)
1) When a company declares bankruptcy, stockholders are the first to be paid when company
assets are sold.
2) Payments to holders of corporate bonds are known as dividends.
3) Index funds are an example of passively managed funds.
4) Actively managed funds consistently outperform index funds.
1) F
2) F
3) T
4) F
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Refer to Figure 12-5. The firm's manager suggests that the firm's goal should be to maximize average profit. In that case, what is the output level and what is the average profit that will achieve the manager's goal?
A) Q = 1,800 units, average profit = $20 B) Q = 1,350 units, average profit = $5 C) Q = 1,100 units, average profit = $6 D) Q = 1,350 units, average profit = $9
For a monopolist, marginal revenue is always
a. below market price b. equal to market price c. greater than market price d. equal to total revenue e. equal to total cost
When Stanley has an income of $1,000 . he consumes 30 units of good A and 50 units of good B. After Stanley's income increases to $1,500, he consumes 60 units of good A and 45 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods. b. Both goods A and B are inferior goods. c. Good A is a normal good, and good B is an inferior good. d. Good A is an inferior good, and good B is a normal good.
Explain the term “laissez faire capitalism.”
Please provide the best answer for the statement.