Economics deals with
A) how to profit from the stock market.
B) how to satisfy limited human wants.
C) how society allocates unlimited resources.
D) how individuals allocate scarce resources to satisfy unlimited human wants.
Answer: D
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Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization in levels. B) In both the techniques of optimization, all costs have to be converted to the same unit of measurement. C) Optimization in levels calculates the change in net benefits when a person switches from one alternative to another. D) Only direct costs are considered when the net benefits of the alternatives are calculated.
Those who favor active policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices. B) inflation and unemployment are stable in the short run and predictable in the long run. C) pure competition is not typical. D) aggregate demand shocks can influence real GDP and unemployment.
Which of the following contributes to structural unemployment?
A. People over 65 who don't really want to work. B. A general short-run downturn in the economy. C. People quitting a job just long enough to look for and find another one. D. People losing a job when their skills become obsolete due to technological innovations.
A company currently pays an annual dividend of $6.50 per share. It expects the growth rate of the dividend will be 2.5% (0.025) annually. If the interest (discount) rate is 5% (0.05) what does the dividend-discount model predict the current price of the stock should be?
A. $257.50 B. $266.50 C. $130.00 D. It doesn't, you need an expected future price to use the model