An example of direct stock ownership is when a person
a. pays into a pension fund that buys stocks
b. puts money into an insurance company that buys stocks
c. invests money in a mutual fund that buys stocks
d. asks a stockbroker to buy stocks for him or her
e. puts funds into a trust fund that buys stocks
D
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When a government subsidizes the sale of milk, cooperative surplus ________ and society gets ________
A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
The supply of any good is likely to be inelastic when
A) consumers have few good substitutes for it. B) it is a manufactured good rather than an agricultural good. C) it can be produced at low cost. D) there are very many producers of the good. E) very little time elapses between the change in price and the change in quantity supplied.
Harry's Hookahs incurs $700,000 per year in explicit costs and $500,000 in implicit costs. The company earns $1.4 million in revenues and has $3.7 million in net worth. Based on this information, what is the economic profit for Harry's Hookas?
A) $200,000 B) $700,000 C) $900,000 D) $1.1 million
Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to
A) choose the overall level of interest rates, with a high budget surplus implying a high level of interest rates. B) choose the overall level of interest rates, with a high budget deficit implying a high level of interest rates. C) control the level of inflation, with a high budget surplus implying a faster rate of inflation. D) control the level of inflation, with a high budget deficit implying a faster rate of inflation.