The value of a stock depends on the ability of the company to generate dividends and the expected price of the stock when the stockholder sells her shares
a. True
b. False
Indicate whether the statement is true or false
True
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To the extent that a direct expenditure offset results from an expansionary fiscal policy,
A) the fiscal policy will not be discretionary. B) the time lags associated with the implementation of fiscal policy will shorten. C) the stimulative effect will be less than anticipated. D) the stimulative effect will be more than anticipated.
If a firm is experiencing constant returns to scale
a. long-run average total cost neither rises nor falls as production increases b. average fixed cost is zero c. the increase in average variable cost is exactly offset by a decrease in average fixed cost d. the decrease in average variable cost is exactly offset by an increase in average fixed cost e. long-run average total cost is zero.
Who said this? "The government is best which governs least".
A. Thomas Jefferson B. Sir William Petty C. John Stuart Mill D. Benjamin Franklin
"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes
a. the law of comparative advantage. b. the importance of secondary effects. c. the gains derived from voluntary exchange. d. economizing behavior.