Owners of preferred stock received fixed dividend payments while owners of common stock receive dividend payments that vary with the level of profits
a. True
b. False
Indicate whether the statement is true or false
True
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Who is considered to be a free rider according to economists?
Which of the following statements best describes the problem of adverse selection?
a. A type of asymmetric information in which one side of an economic relationship can take a relevant action that the other side cannot observe. b. An approach that borrows insights from psychology to help explain economic choices. c. The notion that there is a limit to the information that a firm's manager can comprehend and act on. d. The plight of the winning bidder who overestimates an asset's true value.
If a country has a trade deficit then
a. S > I and Y > C + I + G. b. S > I and Y < C + I + G. c. S < I and Y > C + I + G. d. S < I and Y < C + I + G.
(Consider This) The Native American arts and crafts story illustrates the twin ideas of:
A. product differentiation and monopolistic competition. B. excess capacity and monopolistic competition. C. local oligopoly and strategic behavior. D. pure monopoly and price discrimination.