Which of the following is a difference between a bond and a stock?
a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households.
c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock.
d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.
c
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Acme Widget tells investors it wants to build a new widget factory and sell investors $10,000,000 in bonds to finance it
Once they have raised the $10,000,000 the owners of Acme Widget use the funds to finance a trip to Atlantic City to try out a new scheme they have devised to win at blackjack. This is an example of A) the adverse selection problem in financial markets. B) the moral hazard problem in financial markets. C) the difficulty lenders have in distinguishing good from lemon firms. D) the problems with using rational expectations in financial markets.
If indifference curves cross, then:
A) the assumption of a diminishing marginal rate of substitution is violated. B) the assumption of transitivity is violated. C) the assumption of completeness is violated. D) consumers minimize their satisfaction. E) all of the above
The ability to produce a good at a lower opportunity cost than someone else is called
A) competitive production. B) comparative advantage. C) selective advantage. D) absolute advantage.
Refer to the information provided in Scenario 36.3 below to answer the question(s) that follow.SCENARIO 36.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of
the 200 students who did not attend the program. Refer to Scenario 36.3. To use the intention-to-treat procedure to measure the effect of the after-school program, you would need to compare A. the drop-out percentage of the 50 students were offered the program but chose not to attend to the drop-out percentage of the 150 students who were not offered the program. B. the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 200 students who did not attend the program. C. the drop-out percentage of the 100 students who attended the program to the drop-out percentage of the 50 students who were offered the program but chose not to attend. D. the drop-out percentage of the 150 students who were offered the program to the drop-out percentage of the 150 students who were not offered the program.