How is it possible to have a separation between ownership and control of a major corporation? What specific type of market imperfection can cause this?
If the ownership is diffuse-that is, shares are widely held, and no one person or small group holds a sizable fraction of the total shares-management may not be fully accountable to owners. Management may become a largely independent decision-making body. As long as it keeps enough cash flowing to stockholders to prevent discontent and organized rebellion, management can do as it pleases-within the confines of the law.
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Investments that a bank makes are known as:
A) deposits. B) liabilities. C) assets. D) capital.
Which of the following is a component of aggregate demand?
What will be an ideal response?
The marginal propensity to consume (MPC) is related to the marginal propensity to save (MPS) by the formula MPC = 1 - MPS.
Answer the following statement true (T) or false (F)
A decrease in long-run average costs resulting from increases in output is
A. attributed to the law of diminishing marginal product. B. attributed to constant returns to scale. C. attributed to economies of scale. D. attributed to diseconomies to scale.