If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money.
Answer the following statement true (T) or false (F)
True
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In the absence of property rights, factories will dump waste into a waterway up to the point where ________ equals ________
A) marginal social cost; marginal social benefit B) marginal social cost; marginal private cost C) marginal private cost; marginal private benefit D) marginal private cost; marginal social cost
The price of a good will fall when:
a. there is a shortage of the good. b. there is a surplus of the good. c. demand for the good increases. d. the supply of the good decreases.
The long-run Phillips curve is:
A. vertical, implying a long-run trade-off between unemployment and inflation. B. downward-sloping, implying that the unemployment rate always returns to its natural rate in the long run. C. downward-sloping, implying a trade-off between unemployment and inflation. D. vertical, implying that the unemployment rate always returns to its target rate in the long run.
When the demand curve is a downward sloping straight line, the quantity at which the marginal revenue curve intersects the horizontal (quantity) axis is ________ the quantity at which the demand curve intersects the horizontal (quantity) axis.
A. equal to B. twice C. four times D. half