If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money
a. True
b. False
Indicate whether the statement is true or false
True
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________ is a period of falling prices of goods and services in an economy
Fill in the blank(s) with correct word
Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the manufacturer to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the retailer's belief of the likely success of his product d. All of the above
The consumer price index:
A. measures the increase in the cost of the market basket relative to the cost in a given base year. B. is always 100 in the final year of measurement. C. helps us understand why the cost of living today compares with the cost of living at some time in the past. D. is a perfect measure of how prices change for all goods and services in the economy.
What would happen to the budget line if income as well as prices of both goods increase by the same percentage?
a. A rightward parallel shift in the budget line. b. A leftward parallel shift in the budget line. c. A rightward shift in the budget line. d. No shift in the budget line.