A legal claim to a percentage of a company's future profits and assets is known as a
A. share of stock.
B. random walk.
C. bond.
D. dividend.
Answer: A
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Did the 1957 Treaty of Rome turn the EU into a truly unified market?
A) Yes, it paved the way for the current EMU. B) No, although it established a customs union, it failed to remove barriers to the movement of goods and factors within Europe. C) No, it was only after the German unification and locating the ECB in Frankfurt that unity was achieved. D) No, since the Northern members of the EU had larger endowments of capital and skilled labor. E) No, the Treaty of Rome created more trade barriers between European countries.
Which of the following statements would be true for an economy that can be characterized as being to the right of its LM curve?
A) There is excess supply of money. B) There is excess demand for money. C) There will be a tendency for the level of output to increase. D) There will be a tendency for the interest rate to decrease.
One-shot inflation can originate
A) only on the demand side of the economy. B) only on the supply side of the economy. C) on the demand side or the supply side of the economy. D) on neither the demand side nor the supply side of the economy.
Nominal GDP includes the current value of services produced in the economy.
Answer the following statement true (T) or false (F)