The key difference between a share of stock and a bond is that
a. a share of stock is a riskless asset
b. the holder of a bond receives only one future payment
c. the holder of a share stock has a share in the ownership of a firm
d. bonds are issued only by the government, while stock is issued only by corporations
e. there are secondary markets for stocks, but not for bonds
C
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The idea that tax cuts would increase the quantity of labor supplied, thus increasing tax revenue, became known as supply-side economics
a. True b. False Indicate whether the statement is true or false
In equilibrium, the interest parity condition requires that:
a. all rates of returns will equalize. b. all spot and forward rates will equalize. c. the home interest rate minus its expected rate of currency depreciation (against the foreign country) will equal the foreign interest rate on similar assets. d. all rates of returns and forward rates will equalize.
A rational criminal model assumes
A. smart people commit crime. B. criminals commit crimes because they have more legal opportunities. C. criminals will commit fewer crimes if the likelihood of getting caught rises. D. criminals will commit more crimes if the severity of punishment rises.
A. Realizing allocative efficiency implies that productive efficiency has been realized. B. Productive efficiency can only occur if there is also allocative efficiency. C. Society can achieve either productive efficiency or allocative efficiency,
but not both simultaneously. D. Productive efficiency and allocative efficiency can only occur together; neither can occur without the other. A. increase its supply. B. increase its price. C. increase the quantity sold. D. increase its demand.