Which of these is a disadvantage of issuing stock relative to bonds?
Answer: Partial ownership in the business is given up.
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A student eats a candy bar just prior to taking a test and receives a high grade. He does not buy one for the next test and receives a low score. On his third test, he again eats a candy bar and gets a high score. This student concludes that eating candy bars leads to higher test scores. His hypothesis
A. should be termed a “theory.” B. assumes that correlation implies causation. C. assumes that causation implies correlation. D. reflects the amount of studying he had done for the exams.
When people’s income increases, demand for science fiction novels increases. The novels are
a. an inferior good. b. substitutes. c. a normal good. d. regular goods.
Bad health is an example of:
A. a poverty trap. B. a societal trap. C. a social digression. D. None of these is true.
Exhibit 14-7 Aggregate supply and demand curves
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At point A in Exhibit 14-7, the aggregate demand AD2 and the aggregate supply curve reflect an economy in which
A. full employment is at $1,000 billion GDP. B. excess aggregate supply is created when there is a shift from AD1 to AD2. C. excess aggregate demand forces prices up to P = 120. D. excess aggregate demand causes prices to stabilize at P = 110.