When a person buys stock in a company, that person is buying ________, but when a person buys a bond in a company, that person is ________ the company
A) ownership; borrowing funds from
B) ownership; lending funds to
C) debt; lending funds to
D) debt; borrowing funds from
Answer: B
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If the production possibilities frontier for two goods is shown as a straight line, this implies that
A. there is no trade-off between the two goods. B. the principle of increasing costs is present. C. the slope of the production possibilities frontier is increasing. D. there are no specialized resources used in the production of these goods.
The working-age population includes
A) people over the age of 16 who are in the Army. B) employed and unemployed people over the age of 16. C) those in jails and hospitals. D) youngsters between the ages of 14 and 16 if they are working at least part time. E) only employed people over the age of 16.
A perfectly competitive firm will shut down when the price is just below the minimum point on the
A) average fixed cost curve. B) average total cost curve. C) marginal cost curve. D) average variable cost curve. E) marginal revenue curve.
Which of the following would lead the Fed to increase the money supply under an interest rate rule?
a. an unexplained decrease of money demand b. an increase in taxes c. a decrease in spending that caused the money demand curve to decrease d. an increase in spending that caused the money demand curve to increase e. a decrease in government spending