Which of the following represents a stock's fundamental value?
A) the price the stock would sell at in the midst of a rational bubble
B) the price the stock would sell at if the interest rate were zero
C) the present value of its expected future dividend payments
D) the simple sum of its future dividend payments
E) none of the above
C
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When many banks fail simultaneously, this is known as a
a. run on the bank b. depression c. recession d. banking panic e. Federal Reserve crisis
If an individual receives in-kind transfers from the government in the form of food stamps, public housing, and so on, his money income is
A) less than his total income. B) greater than his total income. C) the same as his total income. D) equal to his in-kind income plus his wages.
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) $1.50 B) $2.50 C) 1 2/3 gallons of milk D) 3/5 of a gallon of milk
At potential GDP
What will be an ideal response?