Other things being equal, the larger the expected future dividends to be received from stock ownership, the higher the current stock price.
Answer the following statement true (T) or false (F)
True
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A hedonic wage function could be applied to which of the following job characteristics?
A. the degree to which the area surrounding the job location is safe B. the degree to which a job involves monotonous work C. the probability of being injured on the job D. the degree to which a job involves strenuous work E. All of the above can be represented with a hedonic wage function.
As the tax wedge associated with a given economic activity gets smaller, we would expect
A) more of that economic activity to occur. B) the distortions caused by taxes on that activity to be greater. C) people to engage in less of that particular activity. D) no change in the practice of that activity until the tax wedge ultimately disappears.
Define "money."
What will be an ideal response?
High inflation
A) makes money function less well as a store of value. B) lowers the price level. C) leads to a more correct allocation of resources. D) decreases uncertainty. E) makes it easier to use money as a standard of account.