In 2014, foreign purchases of U.S. corporate stocks and bonds
A) doubled.
B) grew at a faster pace than foreign investment in U.S. corporate bonds.
C) grew at a faster pace than foreign investment in U.S. government bonds.
D) fell.
D
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An most important service provided by underwriters is
A) lowering of information costs. B) dealing with problems of moral hazard. C) insuring firms against loss from fire. D) insuring firms against loss from employee theft.
At the profit-maximizing output level, an increase in price by a perfectly competitive firm will:
a. cause an increase in profits. b. reduce total cost more than total revenue. c. increase total revenue more than total cost. d. increase total cost more than total revenue. e. cause the firm to lose all of its sales.
If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder over time
a. True b. False Indicate whether the statement is true or false
Which of the following most clearly indicates why the franchiser of a product has a strong incentive to monitor the quality of the product among all of the franchised sellers?
a. The franchiser has a monopoly on the sale of products in his industry. b. If quality is not maintained, the franchiser will be limited in his ability to sell other franchises and collect franchise fees. c. If quality is not maintained, the government will prohibit future sales of the franchises. d. Franchisers do not gain financially by maintaining quality, but they generally maintain quality anyway because they are consumers as well as producers.