U.S. securities firms recently agreed to pay a record amount of $1.4 billion in settlement charges brought by government regulators. Regulators claimed that firms had abused investors during the market boom of the 1990s. Abuses included analysts tailoring their research reports and ratings on the stocks they covered in order to win more business for their firm. If this settlement caused Wall Street firms to comply with the letter of the law but they violate the spirit of the law, the firms are engaging in
A. the capture hypothesis.
B. elimination of conflicts of interest.
C. deregulation.
D. creative response.
Answer: D
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Firms that produce 80 percent of all computer chips have shut down their facilities for maintenance. In the computer chip market this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
Which is the most important source of tax revenue for local governments?
A. Property taxes B. Corporate income taxes C. Personal income taxes D. Sales and excise taxes
If businesses feel more optimistic about the state of the economy, then this change is likely to:
a. Shift the investment demand curve to the right b. Cause a movement down the investment demand curve c. Cause a movement up the investment demand curve d. Shift the investment demand curve to the left
Any restriction on the ease of exchanging on currency for another tends to harm
A. both the prospective import purchaser and the prospective export manufacturer. B. no one. C. only the prospective purchaser of imported goods. D. only the prospective manufacturer of goods for export.