What does the labor theory of value imply about the wages workers are paid in a capitalistic society? Explain
What will be an ideal response?
According to the labor theory of value, workers are paid a subsistence wage. The owners of capital earn profit only because they pay workers less than the value of their production.
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International data supports the quantity theory of money conclusion that high money growth rates are associated with inflation
Indicate whether the statement is true or false
Suppose Ernie gives up his job as financial advisor for P.E.T.S., at which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 in the store, which had been in savings earning 5 percent interest. This year's revenues in the new business were $50,000 . and explicit costs were $10,000 . Calculate Ernie's accounting profit
a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500
Securitization:
A. turns many loans into a single larger asset. B. is an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. C. is a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate. D. turns many loans into a risk-free secure asset.
The practice of dividing packages of debts into slices, each with different risk and return characteristics, is called:
A. bundling. B. leveraging. C. tranching. D. pooling.