Dividends are
A. The only motive for purchasing stock.
B. Profits used for investment in new plants and equipment.
C. An increase in the market value of an asset.
D. The amount of corporate profit paid out for each share of stock.
Answer: D
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A nation's nominal gross domestic product (GDP) ________.
A. is always some amount less than C + I + G + NX B. is the dollar value of all final output produced by its citizens, regardless of where they are living C. can be found by summing C + I + S + NX D. is the dollar value of all final output produced within the borders of the nation during a specific period of time
One disadvantage of a sole proprietorship as a form of business organization is that
a. sole proprietorships cannot lower the transaction costs associated with contracting with resource owners b. sole proprietorships are less efficient than corporations, because they are less specialized in production c. owners of sole proprietorships can lose all their personal assets if the business is sued or fails d. owners of sole proprietorships generally find it difficult to negotiate separation agreements with the other partners in the firm e. owners of sole proprietorships generally have very little control over how they operate their businesses
Which of the following statements is true for the U.S. economy?
a. Higher wages in the unionized sectors of the economy push up wages in the nonunion sectors as well. b. Inflation tends to accelerate when the proportion of the labor force that is unionized increases. c. Union workers currently receive wages that are 15 to 20 percent higher, on average, than similar nonunion workers. d. When we compare similar union and nonunion workers, we find virtually no difference in the wages they receive.
In an open economy, the supply of loanable funds comes from national saving
a. True b. False Indicate whether the statement is true or false