Stocks are a
A) form of equity.
B) form of debt.
C) form of debt and equity.
D) just a way for firms to borrow money.
A
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The reason the marginal cost curve eventually increases as output increases for the typical firm is because of
A. diseconomies of scale. B. increasing opportunity cost. C. diminishing marginal returns. D. diminishing marginal utility.
There are no quasilinear tastes that have constant elasticity of substitution.
Answer the following statement true (T) or false (F)
Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The deadweight loss due to the tax is:
A. $944,444. B. $2.83 million. C. $1.67 million. D. $1.89 million.
Refer to Figure 5.7. Which diagram best represents an income-consumption curve where soup is a normal good?
A. A
B. B
C. C
D. D