Large corporations may obtain funds for operations and expansion
A. with retained earnings.
B. through direct finance when loans are made by financial intermediaries.
C. through indirect finance when stocks are sold in secondary markets.
D. through direct finance when bonds are sold in secondary markets.
E. all of the above.
Ans: A. with retained earnings
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Which point shows where the United States economy was operating during the low point of the Great Depression?
A. Point A
B. Point B
C. Point C
D. Point D
By continuing to operate when price is greater than average variable cost but less than average total cost, a firm limits its losses to:
A) $0. B) its total fixed costs. C) the difference between its total fixed cost and the amount by which total revenue exceeds total variable costs. D) its total variable costs.
Suppose that you allow yourself $50 per month to spend on compact disks. You spend exactly this much every month regardless of the price of compact disks. Therefore, your demand for CDs
a. is elastic b. is inelastic c. is unit elastic d. cannot be characterized unless we know the price of a disk e. cannot be characterized unless we know the price and quantity of compact disks purchased
An appropriate government policy toward negative externalities is to
a. subsidize the activity that creates the negative externality. b. impose a tax or fine on the activity that creates the negative externality. c. pay money to the party that creates the negative externality. d. impose a tax on recipients of the negative externality.