Common stocks are ____ risky for the issuing corporation and ____ risky for the corporation’s stockholders, compared to other financial assets, such as bonds.
A. unusually; unusually
B. less; more
C. more; less
D. very; not
Answer: B
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When the LM curve is horizontal,
A) fiscal policy has no impact on equilibrium income. B) fiscal policy has no impact on the equilibrium interest rate. C) the economy is at full employment. D) monetary policy has no impact on equilibrium income.
The substitution bias in the CPI arises because the CPI:
A. is based on a fixed basket of goods and services. B. does not adequately allow for improvements in products. C. understates the "true" rate of inflation. D. measures prices at two different times.
Economic profit is the difference between
A. accounting profit and explicit costs. B. total revenue and the opportunity cost of all of the resources used in production. C. total revenue and the implicit costs of using owner-supplied resources. D. accounting profit and the opportunity cost of the market-supplied resources used by the firm.
Refer to the above table. What does total product equal when 3 units of labor are used?
Quantity Ave. marginal of product product Labor 1 320 2 335 3 338 4 320 a. 3 b. 1008 c. 336 d. 338