The primary source of corporate financing in the United States is
A. the sale of stock.
B. the sale of bonds.
C. retained earnings.
D. lending from commercial banks.
Answer: C
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Refer to the scenario above. The opportunity cost of producing one pound of apples in Zeta is:
A) 0.67 pounds of oranges. B) 2 pounds of oranges. C) 1.5 pounds of oranges. D) 3 pounds of oranges.
Borrowing from another country that occurs when the country has a trade deficit and its citizens sell real and financial assets to foreigners is called a capital inflow
Indicate whether the statement is true or false
If the government were to reduce its spending, it would be enacting:
A. contractionary fiscal policy. B. expansionary fiscal policy. C. a budgetary crisis intervention. D. expansionary budgetary policy.
A monopolistically competitive firm is operating at a short-run level of output where price is $30, average total cost is $35, average variable cost is $25, marginal cost is $15, and marginal revenue is $12. In the short run this firm should:
A. decrease the level of output. B. shut down. C. make no change in the level of output. D. increase the level of output.