A dividend is:
A. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest.
B. a financial asset that represents partial ownership of a company.
C. a payment made periodically to all shareholders of a company.
D. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
Answer: C
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National income accounting reveals that the value of total production in an economy
A) is always greater than the value of total income in the economy. B) is always less than the value of total income in the economy. C) is always equal to the value of total income in the economy. D) may be greater than, less than , or equal to the value of total income in the economy.
In the Keynesian model, changes in aggregate supply
a. are the primary determinant of inflation. b. could only destabilize the economy. c. are ignored. d. None of the above
Gls
A) results in smaller variances of the estimator than OLS if the regressors are strictly exogenous. B) is the same as OLS using HAC standard errors. C) can be used even if the regressors are not strictly exogenous. D) can be used for time-series estimation, but not in cross-sectional data.
Suppose Mara and David compete, selling fried green tomatoes in a perfectly competitive market. If Mara increases output,
a. David must reduce output b. the price David can charge falls c. the price David can charge rises d. the price David can charge is unaffected e. David's economic profit must fall