Which factor receives the profit from production?
a. land
b. labor
c. capital
d. entrepreneurship
d
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Before it went bankrupt in 2008, Lehman Brothers investment bank had a leverage ratio of 30 which meant it was:
A. highly hedged. B. in debt more than it was worth. C. highly leveraged. D. not very leveraged.
When you were 10 years old, your grandparents put $500 into an account for you paying 7 percent interest. Now that you are 18 years old, your grandparents tell you that you can take the money out of the account. What is the balance to the nearest cent?
a. $1,200.00 b. $1,111.77 c. $983.58 d. $859.09
What is a positive effect of advertising?
A. It promotes economic concentration in industry. B. It reduces economic efficiency in the economy. C. It provides information that reduces search costs. D. It is designed to persuade rather than inform consumers.
What does it mean to “monetize the deficit”? Why is it important in discussions of fiscal policy? Use an appropriate diagram to illustrate your answer.
What will be an ideal response?