If stock exchanges did not exist,
A. the risk to the investor of buying stocks would be much greater.
B. the economy’s resources could be more efficiently allocated among firms.
C. there would be no organized way for firms to issue stock.
D. investment banks would no longer play a role in handling stocks.
Answer: A
You might also like to view...
A firm's external financing need is met by:
a. debt or equity. b. owners' equity, including retained earnings. c. net working capital and retained earnings. d. net income and retained earnings. e. retained earnings.
An investment decision involves choosing
A. The amount of plants and equipment and is a short-run decision. B. A rate of output and is a short-run decision. C. The amount of plants and equipment and is a long-run decision. D. A rate of output and is a long-run decision.
The firm's most efficient output would be
A. 70 units.
B. 80 units.
C. 90 units.
D. 100 units.
Critics of a single tax on land oppose the idea because:
A. it would overtax the population. B. changes in land ownership would cause the tax burden to fall unfairly on people who did not receive economic rents. C. it would disproportionately tax the richest members of society. D. it would cause too much land to be brought out of production.