In the traditional view, stocks are ____ than bonds to the firm that issues them and ____ than bonds to the investor who purchases them.
A. less risky; less risky
B. less risky; riskier
C. riskier; less risky
D. riskier; riskier
Answer: B
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Which of the following is false?
A. The completion of the national railroad network by 1890 led to the development of a national American market rather than just a series of smaller regional markets. B. Northern manufacturers benefited from high protective tariffs, which kept out cheaper British goods. C. The U.S. was the first mass-consumption society. D. Aside from slavery, southern and northern agriculture were very similar.
The idea underlying Adam Smith's "invisible hand" is that people tend to behave in ways that go unnoticed in society
Indicate whether the statement is true or false
In 2008, the Ace Card Company produced $10 million worth of playing cards. Because of strong consumer demand for their product in 2008, Ace sold $12 million worth of cards, reducing their inventories by $2 million. How much value did Ace add to GDP in 2008?
a. $2 million b. $8 million c. $10 million d. $12 million e. $14 million