If there were no adverse selection problems in the stock market,
A) some well-run firms would pay more to raise funds.
B) some poorly-run firms would pay less to raise funds.
C) the willingness of savers to invest in the market would be increased.
D) the volume of new stock issues would be lower.
C
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Which of the following items would be considered scarce?
A) water B) diamonds C) potato chips D) All of the above are scarce.
Consider a closed economy described by AE (aggregate expenditures) = 800,000 + 0.75Y Assume that this economy is initially in equilibrium. But now the government implements a program to improve highways that will cost $1 million. This implies that equilibrium real GDP will:
a. decrease by $1 million. b. decrease by $4 million. c. increase by $1 million. d. increase by $4 million. e. decrease by $800,000.
Which term refers to industry conditions, such as number of sellers and the type of products that are sold?
a. Market structure b. Perfect competition c. Economic structure d. Financial market
Millionaires tend to be older than the general population because
a. older workers generally have more education than younger workers. b. many achieve millionaire status by saving from a relatively modest income, and this will take a lengthy period of time. c. the earnings of most people peak during the retirement phase of life. d. older people have less to do, and therefore, they have more time to come up with innovative ideas.