Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?
a. ownership of a single stock for a short period of time
b. ownership of a single stock over a lengthy period of time
c. ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time
d. ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time
D
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If demand is inelastic and the price falls, the total revenue
A) rises. B) falls. C) remains constant. D) might rise, fall, or remain constant. E) becomes negative.
An advantage of the corporation over other forms of business organization is that
A) the owners have unlimited liability. B) a corporation's profits are taxed only once. C) large-scale, low-cost capital is more readily available. D) the decision-making structure is simple.
When the value of a currency is determined ________, the exchange rate system is defined as managed float
A) only by supply and demand B) by its issuing government, with occasional readjustments in value C) mostly by supply and demand, but with occasional government intervention D) by its issuing government
Edward Denison's analysis of the American economy found that
A) total factor productivity was the largest source of economic growth since 1948. B) the contribution of labor growth has been more variable than the contribution of capital growth. C) productivity growth has been positive over every period of more than five years since WorldWar II. D) the contribution of labor growth has been greater than the contribution of capital growth.