The selling of stock is debt financing for a corporation.
Answer the following statement true (T) or false (F)
False
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When an equal percentage increase in the factors of production raises real GDP by the same percentage, the production function has the characteristic known as
A) constant returns to scale. B) constant marginal productivity. C) diminishing marginal productivity. D) increasing returns to scale.
Nonunion wages should be modeled as
A) sticky, because they imitate union wages rather closely. B) sticky, because their contracts cannot contain COLA clauses. C) perfectly flexible, because wage contracts are illegal outside of unions. D) perfectly flexible, because workers willing to take the risks of full wage flexibility are precisely those workers who have rejected unionization.
Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars SoldTrucks SoldLarry105Joe99Ralph312 Based on last month's data, Ralph's opportunity cost of selling a truck is selling:
A. 3 cars. B. 4 cars. C. 1/4 of a car. D. 1/3 of a car.
The specific goals of central banks include each of the following, except:
A. low and stable inflation. B. low and stable unemployment. C. high and stable real growth. D. high levels of exports.