A firm's retaining of earnings is really equivalent to the firm
A. decreasing the net worth of households.
B. decreasing its own net worth.
C. borrowing money from households.
D. lending money to households.
Answer: C
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List three reasons why nominal wages can be sticky in the short run
What will be an ideal response?
Why is diversification recommended for investors?
What will be an ideal response?
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. What is the marginal product of the ninth worker?
A. 10
B. 5
C. 15
D. 290
Which of the following is true regarding value, transaction costs, and exchange?
a. Middlemen can be viewed as agents who create value by reducing transaction costs and, thereby, facilitating gains from exchange. b. Middlemen fail to create value since they do not expand the supply of physical goods. c. A good or service has a given value regardless of who uses it or how it is used. d. Voluntary exchange reduces value by channeling goods into the hands of people who value them least.