If a corporation earns a profit, how do owners of the firm share in the profit?
A) through coupon payments on that firm's bonds
B) through dividend payments on shares of that firm's stock
C) by selling any bonds or stocks owned and realizing a capital gain
D) by raising the interest rate on bonds
Answer: B
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Public debt is held as
A) Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B) U.S. Notes. C) Federal Reserve Notes. D) corporate bonds and common stocks of the largest companies.
The wage rate needed to generate enough earnings to reach the 4-person poverty line is often referred to as the "working wage"
Indicate whether the statement is true or false
One common assumption in game theory is that firms
a. try to avoid the worst outcome b. try to achieve the best outcome c. minimize losses d. always cooperate e. always compete
If the market for Czech restaurants is making a large economic profit, which of the following examples would most likely be a direct consequence?
a. New French restaurants will enter the market. b. Existing French restaurants will leave the market. c. New Czech restaurants will enter the market. d. Existing Czech restaurants will leave the market.