If money raised in the issue of new stocks and bonds by corporations is used effectively,
A. the income from them is not subject to double taxation.
B. a firm need not meet SEC requirements.
C. the stock is being “watered.”
D. they generate the means of repayment.
Answer: D
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Which of these is a central argument of Keynes's General Theory? a. Competition does not allocate resources efficiently in a modern industrial economy
b. Full employment can be maintained even during a major recession if wage rates are lowered far enough. c. Modern industrial economies do not tend automatically toward full employment rates of output. d. Money does not play an important role in either causing or curing recession. e. Government can best stabilize the economy by letting the market system automatically adjust toward full employment.
The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line equals
A) -5. B) -4. C) -3. D) -1. E) -2
The long-run aggregate supply curve represents the level of output possible if the economy:
A. is operating at full capacity. B. is operating at an unemployment rate of zero. C. has a zero inflation rate. D. has no structural unemployment.
An optimal decision is one that chooses
a. the most desirable alternative among the possibilities permitted by the resources available. b. the lowest cost method of meeting goals, without regard to quality or any other feature. c. among various possible goals and offends no one, so that all are equally happy. d. among equally important goals, and thereby avoids the "indispensable necessity" syndrome. e. among possible goals in such a way that spends as little money as possible.