Ceteris paribus, the price of a stock will definitely increase when the
A. Prevailing interest rate increases.
B. Demand for the stock increases.
C. Supply of the stock increases.
D. Demand for the stock and supply of the stock both decrease.
Answer: B
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Deadweight loss
A. can result from underproduction, but not from overproduction. B. can result from overproduction, but not from underproduction. C. is measured as the combined loss of consumer surplus and producer surplus. D. results from producing a unit of output for which the maximum willingness to pay exceeds the minimum acceptable price.
Only the most reputable borrowers operate by ________ finance, such as selling securities ________
A) indirect, to savings banks B) indirect, on the bond market C) direct, to savings banks D) direct, on the bond market
Which of the following is closest to a perfectly competitive market?
A) the soda pop market B) the market for bread C) the market for sugar D) the market for fast food
Laws that make it illegal to require union membership as a condition of continuing employment in a firm are
A) union shop laws. B) right-to-work laws. C) closed-shop laws. D) jurisdictional laws.