When a business purchases a $50,000 computer system by writing a check, the business's balance sheet will:
A. show an increase in assets and liabilities for $50,000.
B. not reflect any increase in assets or liabilities, only a change in the composition of assets.
C. only show an increase in assets of $50,000.
D. only show an increase in liabilities of $50,000.
Answer: B
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The skewness is most likely positive for one of the following distributions:
A) The grade distribution at your college or university. B) The U.S. income distribution. C) SAT scores in English. D) The height of 18 year old females in the U.S.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type A individual contribute in total? a. 1875 b. 1500 c. 875 d. 625
When sellers have more information about hidden characteristics of a good than buyers have, more low-quality units are likely to be sold than high-quality units. This is
a. the law of diminishing marginal returns b. the law of natural selection c. the winner's curse d. the lemons problem e. the problem of common pools
Answer the following statement(s) true (T) or false (F)
1. Retained earnings means a corporation puts profits back into the company instead of paying them as dividends. 2. The term securities refers to real estate and cash. 3. Banks, mutual funds, savings and loans, and insurance companies are all types of financial intermediaries. 4. The total value of saving for an economy must be greater than the total value of investment. 5. Public saving is the amount of income the government has left over after paying for its spending.