If the buyer commits $100,000 of his or her own funds and borrows $900,000 to purchase $1 million in assets, then the leverage ratio is
A. 10 to 1.
B. 25 to 1.
C. 9 to 1.
D. 5 to 1.
Answer: A
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What is the Herfindahl-Hirschman Index if the four firms in an industry account have market shares of 62 percent, 15 percent, 15 percent, and 8 percent?
A) 100 B) 4,358 C) 111,600 D) 2,822 E) 6,200
Describe the role of uncertainty at the beginning of and in the unfolding of a financial crisis
What will be an ideal response?
The concept of economic rent would be more applicable to the earnings of
a. a secretary. b. Peyton Manning. c. a doctor or a lawyer. d. only a landowner.
Low-skill workers earn a lower wage than more experienced, higher skilled workers because the
a. low-skill workers were never given the opportunity to invest in human capital. b. low-skill workers lack the intelligence necessary to do any other form of work. c. low-skill workers are too lazy to search for other employment opportunities. d. supply of low-skill workers is large relative to the demand for workers in this skill category.