A bond is
A) a legal claim to a part of a corporation's future profits that includes voting rights.
B) a legal claim to a part of a corporation's future profits that does not include voting rights.
C) a legal claim against a firm, providing a fixed annual coupon payment and a lump-sum payment at maturity.
D) a nonlegal promise to provide an annual payment to the holder when the corporation makes profits.
Answer: C
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If the income elasticity of hamburgers is -0.8 for John, then his share of income spent on hamburgers will ________ when his income increases
A) increase B) decrease C) remain the same D) Not enough information
When would you expect economic profits in an industry to be zero? a. When firms are entering the industry
b. When firms are leaving the industry. c. When existing firms are growing. d. When firms have no incentives to enter or exit.
Equilibrium is the point where total spending equals total output, or GDP.
Answer the following statement true (T) or false (F)
An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve
A) increase; rightward B) increase; leftward C) decrease; rightward D) decrease; leftward