What happens in the primary market?
A) newly issued claims are sold by the borrowing firm to the initial buyer
B) already issued claims are sold from one investor to another
C) primary inputs like electricity are sold
D) a corporate financial manager will resell previously issued shares of stock
A
You might also like to view...
In the figure above, the market for jackets ________ in long-run equilibrium, and there is ________ for new firms to enter
A) is; no incentive B) is; an incentive C) is not; an incentive D) is not; no incentive
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would consider:
A. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
B. whether the producer surplus lost to deadweight loss is larger than the producer surplus gained from a higher price.
C. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
D. whether the producer surplus lost due to lower prices is larger than the producer surplus lost due to fewer transactions taking place.
A decrease in household income for a good that is considered normal would
A. cause a movement along the demand curve to a (higher price, lower quantity) point. B. move its demand curve to the left. C. cause a movement along the demand curve to a (lower price, higher quantity) point. D. move its demand curve to the right.
A currency that is pegged to another currency is usually changed on a supply-and-demand basis.
a. true b. false