A legal claim against a firm that usually entitles the owner of the claim to receive a fixed annual coupon payment, plus a lump-sum payment at some future date, is known as
A) a bond.
B) a share of common stock.
C) a share of preferred stock.
D) a reinvestment coupon.
Answer: A
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The reason why firms in perfect competition end up with no economic profit in the long run is that
a. they do not have the knowledge to run the firm correctly b. in the long run, firms lose competitiveness c. in the long run, costs rise to equal prices d. if they make an economic profit, new firms will enter the industry, driving the price down, and this continues until economic profit is zero e. in the long run, the losses of firms who leave the industry equals the economic profit of those who remain
Given a $500 billion AD shortfall and an MPC of 0.75, the desired fiscal stimulus would be
A. A $2 trillion increase in government expenditures. B. A $375 billion increase in government expenditures. C. A $125 billion increase in government expenditures. D. A $500 billion increase in government expenditures.
The high productivity of the U.S. economy results from using highly educated workers in a capital-intensive production process.
Answer the following statement true (T) or false (F)
Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the marginal product from hiring the fourth worker?
A) 70 gallons of gasoline B) 280 gallons of gasoline C) 40 gallons of gasoline D) 80 gallons of gasoline