Which of the following statements about financial markets and securities is TRUE?
A) Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange.
B) As a corporation gets a share of the broker's commission, a corporation acquires new funds whenever its securities are sold.
C) Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.
D) Prices of capital market securities are usually more stable than prices of money market securities, and so are often used to hold temporary surplus funds of corporations.
A
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Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million. You may find it helpful to fill in the payoff matrix below. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q382g1.jpg" alt="" style="vertical-align: 0.0px;" height="203" width="377" />Which of the following statements is correct?
A. Mexico's dominant strategy is to abide by the agreement.
B. Mexico does not have dominant strategy.
C. Mexico's dominant strategy is to cheat on the agreement.
D. Mexico does not have a dominated strategy.
In order to increase society's well-being, education might be
a. taxed to discourage production b. subsidized to encourage production c. taxed to encourage production d. subsidized to discourage production e. provided without government intervention
An increase in the U.S. price level, other things constant, will _____
a. increase U.S. exports and decrease U.S. imports b. increase U.S. exports and leave U.S. imports unchanged c. decrease U.S. exports and increase U.S. imports d. decrease U.S. exports and leave U.S. imports unchanged e. leave both U.S. exports and U.S. imports unchanged
The amount of deadweight loss that results from a tax of a given size is determined by
a. whether the tax is levied on buyers or sellers. b. the number of buyers in the market relative to the number of sellers. c. the price elasticities of demand and supply. d. the ratio of the tax per unit to the effective price received by sellers.