If Boeing decides to build a new plant using retained earnings,
A. the value of shares of Boeing held by stockholders goes up.
B. the total value of Boeing goes up.
C. it does so only with the shareholders' explicit consent.
D. All of the above are correct.
Answer: D
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Some colleges charge for student parking. Currently, your college does not charge for parking but the administration announced a possible charge of $2 per day. You are not sure when the new parking policy will start; therefore you decide to keep a $5 bill in your wallet. You hold to $5 for the:
A. impulsive motive. B. money creation motive. C. speculative motive. D. precautionary motive.
All of the following are true regarding the relationship between price elasticity of demand and total revenues EXCEPT
A) when market demand is elastic, if the market price declines, then total revenues will rise. B) when market demand is unit elastic, if the market price rises, then total revenues will not change. C) when market demand is inelastic, if the market price falls, then total revenues will decrease. D) when market demand is inelastic, if the market price rises, then total revenues will decrease.
Exemptions are reductions of adjusted gross income that depend on
A. family size. B. how money is spent (e.g. on state and local taxes or home mortgage interest). C. how much money is saved. D. family structure (i.e. filing status).
For a risk averse person, an increase in wealth brings ________ total utility of wealth and ________ marginal utility of wealth
A) higher; higher B) higher; lower C) lower; higher D) lower; lower