The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ____.
A. low; low
B. high; high
C. high; low
D. low; high
D. low; high
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Which legal claim has a fixed annual coupon payment?
A) common stock B) preferred stock C) bond D) reinvestment
A preferred shareholder
a. receives a stated dividend yield if profits are sufficient b. can vote at shareholder meetings on important corporate matters c. can vote at shareholder meetings only on the election of the members of the board of directors d. can convert his or her shares into common shares e. receives a dividend before bondholders receive anything
During economic slowdowns (recessions) the velocity of money tends to:
A. increase dramatically. B. increase slightly. C. decrease. D. remain relatively stable.
Suppose that an MBA degree creates no externality because the benefits of an MBA are internalized by the student in the form of higher wages. If the government offers subsidies for MBAs, then which of the following statements is correct?
a. The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAs. c. The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs. d. There is not enough information to answer the question.