Stockholders receive returns on their financial investment in the form of ________ and ________.
A. interest payments; dividends
B. capital gains; interest payments
C. coupon payments; capital gains
D. capital gains; dividends
Answer: D
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A country that has an absolute advantage in producing all goods will ________
A) have a comparative advantage in some goods but not all B) produce all goods at lowest opportunity cost C) have a comparative advantage in all goods D) not gain from specialization and trade
What is the purpose of the following figure?
What will be an ideal response?
After 2003, The Federal Reserve usually keeps the discount rate
A) above the target federal funds rate. B) equal to the target federal funds rate. C) below the target federal funds rate. D) equal to zero.
The difference between scarcity and a shortage is
A) scarcity is caused by poverty and shortages are caused by natural disasters. B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human errors. C) scarcity always is a part of human life while shortages usually are temporary. D) shortages are always part of human life while scarcity is usually temporary.