Which of the following is true?
A) Most stockholders own stock because they want to run the business.
B) The shareholders of a large well-established firm are guaranteed to earn a real rate of return of about seven percent in the future.
C) Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
D) Stock ownership makes it possible for investors to own a fractional share of a firm's future profits even if they do not participate in the operation of the firm.
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When the price of oranges increases,
A) the supply of oranges increases. B) the quantity of oranges demanded increases. C) the quantity of oranges supplied increases. D) the supply of oranges decreases. E) none of the above
The stabilization policies of government are most likely to promote
A) high employment. B) price stability. C) reduced aggregate fluctuations. D) the interests of those who plan and execute them. E) the interests of the majority of voters.
Entrepreneurs often undertake the innovations that are necessary to bring inventions to the marketplace. Accordingly, what empirical pattern should be expected in an international comparison?
A) Countries with higher rates of entrepreneurship have higher rates of poverty. B) Countries with higher rates of entrepreneurship have lower rates of immigration. C) Countries with higher rates of entrepreneurship have lower rates of economic growth. D) Countries that protect the property rights of entrepreneurs will have higher rates of economic growth.
When the inflation rate is expected to be zero, Steve plans to lend money if the interest rate is at least 4% a year and Cindy plans to borrow money if the interest is no more than 4% a year. Steve and Cindy make a loan agreement for one year at an interest rate of 4% a year when the inflation rate is zero. But if Steve and Cindy expect an inflation rate of 1% a year, they would be willing to make a loan agreement at ... % a year
What will be an ideal response?