In short-run equilibrium for a competitive firm, economic profits:
A. will be positive.
B. will be negative.
C. will be zero.
D. may be positive, negative, or zero.
Answer: D
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Which of the following about corporations is TRUE?
A) The cost of capital and labor is high relative to that paid by a proprietorship. B) Profits are taxed only once as the owners' income. C) The owners' entire wealth is at risk. D) Corporations' profits are taxed independently of their owners' incomes.
According to efficient market theory, which of the following can best predict the stock price of a particular company tomorrow?
A) a finance professor who knows a lot of investment theory B) a stock trader who has traded stocks for more than 10 years C) that company's employee who has inside information about the company D) none of the above: Everyone has an equal chance of predicting future stock prices
Just under half of the people in the world who live in extreme poverty live in China and India combined.
Answer the following statement true (T) or false (F)
With the relative PPP, a rise in a nations inflation rate is always associated with an increase in the _____ if its currency
A) rate of appreciation B) rate of forward premium C) rate of deprecation D) rate of forward discount