Which of the following is NOT a principal method of financing today?
A) common stock
B) bond
C) reinvestment
D) the entrepreneur's wealth
Answer: D
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Which of the following statements is true?
a. Money must be relatively "scarce" if it is to have value. b. Money must be divisible and portable. c. M1 is the narrowest definition of money. d. All of these.
This graph depicts the demand for a normal good. A shift from A to B in the graph shown might be caused by:
A. an increase in the good's price. B. a decrease in the price of a complement. C. a decrease in the price of a substitute. D. an increase in the price of a complement.
Investment demand is downward sloping because
A) an increase in investment demand causes interest rates to fall. B) at lower interest rates, firms will undertake more investment. C) at lower interest rates, firms will undertake less investment. D) None of the above.
If an economic agent's returns to entrepreneurship is likely to be lower than his opportunity cost of entrepreneurship:
A) he will choose to be an entrepreneur. B) he will always make profits if he chooses to be an entrepreneur. C) he will always make losses if he chooses to be an entrepreneur. D) he will not choose to be an entrepreneur.