Traditionally, Wall Street investment banks had been organized as partnerships, but by 2000 they had converted to being publicly traded corporations
As partnerships, the principle-agent problem is ________, but as publicly traded corporations, the principal-agent problem is often ________.
A) reduced; less severe B) increased; more severe
C) increased; less severe D) reduced; more severe
D
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Use the following graph for a competitive market to answer the question below.
Assume the government imposes a $3 tax on buyers, which results in a shift of the demand curve from D1 to D2. The price the consumer pays for the product after the tax is imposed on the buyer is
A. $7. B. $3. C. $8. D. $5.
Suppose a bond has a coupon of $75, face value of $1000, and current price of $1100. What is the coupon rate? What is its current yield? Report a percentage with two decimal places
What will be an ideal response?
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $70 million. Government spending also increases by $70 million and consumption falls by $10 million. If GDP remains the same and Alpetra is a closed economy, then investment
a. increases by $140 million. b. increases by $70 million. c. decreases by $60 million. d. decreases by $80 million.
In the theory of consumer choice, when a person is choosing which good or service to consume, how does he or she select the units of good or service to consume?
A. ?The person selects the good or service based on need. B. ?The person selects the units of a good or service that generates the greatest marginal utility. This process continues until there budget is spent. C. ?The person selects the units of a good or service that generates the greatest marginal utility per dollar spent. This process continues until the person's budget is spent. D. ?The person randomly selects what they buy until the budget is spent. ?