Which of the following groups have no promise of any payment from the corporate firm?
a. the banks who have loaned the company money
b. the common stockholders
c. the preferred stockholders
d. the managers
e. the bondholders
B
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The social cost of cutting trees for firewood in a government forest is
A) the increased likelihood of flooding as more trees are cut. B) opportunity cost to the individual of cutting the wood. C) the increased likelihood of flooding as more trees are cut plus the private cost of cutting the trees. D) the marginal costs of cutting the last tree.
To hedge the interest rate risk on $4 million of Treasury bonds with $100,000 futures contracts, you would need to purchase
A) 4 contracts. B) 20 contracts. C) 25 contracts. D) 40 contracts.
"The second glass of zinfandel was very good," said Ian McDonald. "May I have another?" Which of the following is true with respect to Ian's comment and his request for another glass?
a. The MU of the second glass is negative. b. The MU of the second glass is less than the MU of the first glass. c. The MU of the third glass is positive. d. The MU of the third glass is negative. e. The MU of the fourth glass is positive.
The basic concern of economics is to:
A) keep business firms from losing money. B) prove that capitalism is better than socialism. C) study the choices people make. D) use unlimited resources to produce goods and services to satisfy limited wants.