When a household owns shares of stock, _____
a. it has ownership rights in that firm
b. it is entitled to the majority of the firm's profits
c. it is liable to bear the entire loss faced by the firm
d. it can consume the firm's products without paying for it
e. it is responsible for correcting any defect in the product identified by the customers
a
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An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model. B) the model's ability to predict future economic activity. C) the number of economists who have worked on the model. D) the number of assumptions which the economist has made.
Walter rents some ice time at the local hockey rink for 2 hours. After skating for an hour, he finds himself cold, tired, and hungry. If Walter decides to skate around for the other hour before leaving, it is likely because he:
A. is ignoring the sunk cost of the rink time. B. is focusing on the sunk cost of the rink time. C. is weighing his opportunity costs of the second hour against the benefits of the second hour of skating. D. None of these is true.
If labor were completely mobile between Muncie, Indiana, and Lexington, Kentucky, and the cost of living was the same in each city, we would expect to find that
a. accountants in Muncie earn the same wage rate as garbage collectors in Lexington b. garbage collectors in Lexington earn more than accountants in Muncie c. garbage collectors in Muncie earn the same wage rate as accountants in Lexington d. all accountants in Lexington would earn the same wage rate e. accountants in Muncie earn the same wage rate as accountants in Lexington
Trade diversion results in
A) an increase in the total amount of trade in the world. B) a decrease in the total amount of trade in the world. C) no change in the total amount of trade in the world. D) either an increase or decrease in the amount of trade in the world, depending on where trade takes place.