Suppose the ABC Corporation had a stock price of $56.80 on December 31, 2006. On December 31, 2007, it has a stock price of $60.15. Over the year, it paid $2.00 in dividends per share. Calculate the total return of a share of ABC Corporation stock in 2007, showing your work.
What will be an ideal response?
We calculate the price appreciation as $60.15 ? $56.80 = $3.35. The price appreciation plus the $2.00 dividend is $5.35. The total return is then $5.35 ÷ $56.80 = 0.0942, or 9.42%.
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Refer to Figure 7-4. With insurance and a third-party payer system, what is the amount of the deadweight loss?
A) $0 B) $1,500 C) $3,000 D) $9,500
The U.S. work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours
A) increases U.S. GDP and increases the well-being of a typical working person in the U.S. B) increases U.S. GDP and decreases the well-being of a typical working person in the U.S. C) decreases U.S. GDP and decreases the well-being of a typical working person in the U.S. D) decreases U.S. GDP and increases the well-being of a typical working person in the U.S.
Advocates of discretionary policy make which of the following criticisms of the economy’s “self-correcting” mechanism?
A. It is slow. B. It is not very reliable. C. It works only when supplemented by automatic stabilizers. D. All of these responses are correct. E. Options a and b only are correct.
Answer the following statements true (T) or false (F)
1. The CPI measures price changes for only about two-thirds of all spending. 2. The GDP Implicit Price Defoliator is the broadest index of price changes. 3. The PPI is an index of the price level of aggregate output. 4. Check able deposits are counted as part of the U.S. money supply. 5. Savings deposits are not counted as part of the M1 measure of the U.S. money supply.