Each of the following is a source of financial capital for a corporation EXCEPT
A) issuing new stock.
B) reinvestment of profit or retained earnings.
C) issuing bonds or borrowing funds from a bank.
D) dividends.
Answer: D
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According to opportunity-cost theory, the cost to an airline of letting its employees fly at no charge
A) depends upon the alternatives available to the employees. B) is greater around the Christmas holidays. C) is zero. D) will depend upon the value employees place upon travel.
When interest rates are free from central bank manipulation, and fall due to an increase in household savings, this
A) provides an incentive for government to create a budget surplus. B) sends a "green light" signal for businesses to increase investment. C) has little impact on the macroeconomy. D) creates a "cluster of errors" and an inevitable recession.
A changes in which of the following shifts the demand curve for hamburgers?
A) an increase in the price of the meat used to produce hamburgers B) an increase in the price of a hamburger C) a fall in the price of french fries, a complement for hamburgers D) an increase in the number of hamburger restaurants
Which of the following is an equilibrium condition for the goods market?
A) M = kPQ B) Desired saving and desired investment C) Money demand = money supply D) IS = LM