All of the following represent differences between stocks and bonds except
A) the future growth of a stock is more uncertain than the payments of a bond.
B) differences of opinion about a stock's future may vary considerably but there is less difference about a bond's future.
C) bonds represent partial ownership in a firm but stocks do not.
D) a stock can possibly pay dividends forever, but bonds have a fixed number of payments.
C
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A specific tariff provides home producers more protection when
A) the home market buys cheaper products rather than expensive products. B) it is applied to a commodity with many grade variations. C) the home demand for a good is elastic with respect to price changes. D) it is levied on manufactured goods rather than primary products. E) the home supply outnumbers the foreign imports.
If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25, what is its total cost?
a. $200 b. $1,000 c. $520 d. $320
The case for ________ is based on the theory of comparative advantage.
A. export subsidies B. free trade C. tariffs D. quotas
You use $5,000 of your own money to start a dog-walking business. During the first year you earn a 6% return on your investment. If the current interest rate is 8%, you earn an economic profit of
A. -$60. B. -$100. C. $200. D. $300.