One reason investors may prefer bonds over stocks is
a. potential profits are larger
b. bond prices never vary
c. bondholders get paid before stockholders
d. owning bonds implies owning a part of the company
e. interest rates do not affect the value of bonds
C
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Adverse selection occurs when
A) a person takes more risks that are not known to the life insurance company because he has life insurance. B) a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company. C) a person is a risk lover. D) pregnant women with health insurance make more doctor visits than uninsured pregnant women.
A firm that has increasing marginal output would be experiencing __________.
Fill in the blank(s) with the appropriate word(s).
The main objective of the members of a cartel is to
A. produce efficiently. B. make the industry more competitive. C. obtain a patent. D. earn economic profits.
One of the most widely used methods for examining consumers' cognitive processing of advertising messages is assessment of their ___, the thoughts that occur to them while reading, viewing, and/or hearing a communication
Fill in the blank(s) with the appropriate word(s).