The yield percentage of a stock is calculated as
A. the corporation's net worth divided by the number of shareholders.
B. the book value of the stock divided by the number of shareholders.
C. the expected appreciation of the stock.
D. the stock dividend divided by the price of the stock.
Answer: D
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Which of the following macroeconomic variables is the most seasonally procyclical?
A) Expenditure on services B) The unemployment rate C) Expenditure on durable goods D) The real wage
"The customer is always right" explains
a. the higher wages paid to members of a union. b. compensating differentials. c. persistent wage discrimination based on consumer preferences. d. All of the above are correct.
Suppose a firm overpays its workers at the start of the job, and then the firm slowly lowers wages over time until eventually the firm pays the workers considerably less than the worker's marginal product of labor. What prevents this "reverse of a delayed-compensation scheme" from being implemented?
A. The firm would need to enforce a mandatory retirement age, which is illegal in the United States. B. Workers would leave the job as soon as the firm tried to pay the worker less than his or her value of marginal product. C. Workers prefer wages to increase over time. D. The workers would never have an incentive to invest in general training. E. The firm would fire the worker as soon as the worker's value of marginal product exceeded the worker's wage.
Another term for what the text calls the "target rate of unemployment" is:
A. real unemployment. B. nominal unemployment. C. the natural rate of unemployment. D. Keynesian unemployment.