The exchange of secondhand securities
a. takes place in an oligopolistic market
b. does not provide funds to the firm that issued those securities
c. includes the initial sale when securities are issued by a firm
d. involves very few institutional investors
e. lowers the liquidity of the securities
B
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A price floor policy establishes a minimum price for a market. Which of the following results from a binding price floor?
A) Equilibrium B) Excess demand C) Excess supply D) Shortage
Suppose a taxpayer has an income of $70,000 and a taxable income of $60,000, and pays $9,000 in taxes. If the taxpayer says she is taxed at a 15 percent tax rate, she is referring to the
A. Effective tax rate. B. Average tax rate. C. Marginal tax rate. D. Nominal tax rate.
E1 is demand elasticity for Minute Maid orange juice, E2 is demand elasticity for all orange juice, and E3 is demand elasticity for all fruit drinks. Then
A. |E1| > |E2| > |E3| B. |E3| > |E1| > |E2| C. |E2| > |E3| > |E1| D. |E3| > |E2| > |E1|
Considering the euro/U.S. dollar exchange rate, as a U.S. dollar increases in value versus the euro (holding other factors constant):
A. American goods become relatively less expensive than foreign goods. B. foreign goods become relatively less expensive than American goods. C. we would expect the supply curve of dollars to slope downward. D. foreign assets become relatively more expensive than American assets.