Which of the following is not correct?
a. Earnings from capital may be paid to households in the form of dividends.
b. Earnings from capital may be retained by firms to purchase additional capital.
c. Firms may not pay out all of their earnings to households.
d. Firms earn the highest profits when the owners of capital receive a value above the marginal product.
d
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How can a bond have a negative rate of return?
A) if the current yield is greater than the coupon rate B) if the current yield is less than the coupon rate C) if the rate of capital loss exceeds the current yield D) if the rate of capital gains is less than the current yield
Cyclical unemployment is caused by
A) technological change. B) fluctuations in the business cycle. C) a dynamic economy in which people want to switch jobs sometimes. D) predictable shifts in production associated with different seasons.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.
Which of the following would most likely be part of the study of microeconomics?
A. how General Motors makes decisions regarding its production goals B. overall price stability in the United States C. the total economic output of our domestic economy D. national income