Which of the following describe(s) how corporations acquire funds for investment?
a. By lending out money for student loans or home mortgage loans.
b. By issuing shares and retaining part of their profit.
c. By paying dividends to stockholders.
d. By paying taxes to the government.
b
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If the economy is at point R, most likely this economy is experiencing __________.
Major League Baseball teams are similar to other firms in that they use factors of production to produce a product (baseball games). An example of capital used by teams to produce their products is
A) the ballparks where the games are played. B) the labor of baseball players. C) the money teams earn from television contracts and ticket sales. D) the land on which baseball games are played.
If the price of labor rises relative to the price of capital, the cost-minimizing ratio of capital usage to labor usage (i.e., the ratio K/L) will
A. be unchanged. B. decrease. C. increase. D. cannot determine without more information
Which of the following integration types aims at reducing transaction costs?
A. Cointegration B. Vertical integration C. Conglomerate integration D. Horizontal integration