The most prestigious stock market in the world is the
A) New York Stock Exchange.
B) Chicago Mercantile Exchange.
C) London Stock Exchange.
D) Tokyo Stock Exchange.
Answer: A
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Which one of the following is TRUE in an open economy with a government sector?
A) The equilibrium level of real GDP occurs when total planned real expenditures equal real GDP. B) The equilibrium level of real GDP occurs when planned real investment spending is zero. C) The equilibrium level of real GDP occurs when planned real saving equals government spending. D) The equilibrium level of real GDP occurs when real net export spending equals zero.
Which of the following will most likely increase aggregate demand?
a. a decrease in stock market prices b. a lower real interest rate c. a decrease in the expected inflation rate d. a decrease in real GDP
Fortunade Corporation stock has a price of $100 per share, a dividend of $1.60 per share, and retained earnings of $2.00 per share. The dividend yield on this stock is
a. 2.8 percent. b. 2.0 percent. c. 1.6 percent. d. 0.4 percent.
Wages tend to be "sticky" because:
A. contracts are often negotiated for long terms and cannot be easily changed. B. constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates. C. workers are less likely to work as hard if their pay may be cut due to market performance and not their performance. D. All of these are possible reasons why wages might be sticky.