Which of the following statements is true?
A) Differences of opinion about a bond's future may vary considerably but there is less difference about a stock's future.
B) Bonds represent partial ownership in a firm but stocks do not.
C) The future growth of a stock is more certain than the payments of a bond.
D) A stock can possibly pay dividends forever, but bonds have a fixed number of payments.
D
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If firms in an industry make output decisions that are partially based on the price and output decisions of their competitors, then these firms are in ________ market have ________ with the other firms in the market
A) an oligopoly; interdependence B) an oligopoly; no interdependence C) an oligopoly or monopolistically competitive; interdependence D) a monopolistically competitive; no interdependence
Rural families were larger in size, on average, than urban families during the antebellum period. Some argue that the relatively high rate of return on a child born on a farm partly explains why
Children born on farms could be considered investments goods—"goods" used to produce something else. Indicate whether the statement is true or false
Which of the following is an implication of the random walk theory?
a. Experts will be able to make money by picking and choosing the best stocks. b. There is a systematic pattern to the movement of prices in the stock market. c. Stock market investors can expect to earn a fairly steady real rate of return of about 7 percent annually. d. Even experts will be unable to predict the future movement of stock prices with any degree of accuracy.
An economy is considered a small open economy if it
A. doesn't trade internationally. B. is too small to affect the world real interest rate. C. has a zero trade balance. D. has GDP less than 1% of world GDP.