Tobin's q is
A) the ratio of a firm's market value on the stock and bond markets to the replacement cost of its capital stock.
B) the ratio of a firm's gross investment to its capital stock less its replacement cost of capital.
C) a firm's replacement cost of capital less its value on the stock and bond markets.
D) the ratio of a firm's replacement cost of capital to its gross investment.
A
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Everything else held constant, an autonomous monetary policy tightening ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
If individual X has comparative advantage in painting and individual Y has comparative advantage in carpentry, then
A) individual X must use fewer hours to paint a fence than individual Y. B) individual Y will specialize in painting. C) there is a lower opportunity cost (expressed in units of carpentry) for individual X to paint than for individual Y to paint. D) specialization will not occur, since each does not have a clear absolute advantage.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms economic profits should
a. increase b. decrease c. stay the same d. increase as long as the investment does not generate implicit costs that are greater than $0.15 per unit
The nominal wage is _____
Fill in the blank(s) with the appropriate word(s).