The firm or corporation is the focal point for
A. dealing with asymmetric information.
B. value minimization.
C. the interaction of demand and supply.
D. a set of contracts.
Answer: B
You might also like to view...
Tax cuts aimed at businesses can stimulate
A) social spending. B) net exports. C) private consumption. D) investment spending.
The distribution of income in the United States has grown substantially more unequal since about:
a. 1970 b. 1980 c. 1990 d. 2000
Your artistically talented friend Pablo offers to sell you one of his paintings that he knows you enjoy looking at. You value this enjoyment at $100 and then expect to sell the painting at the end of one year for $500. You would buy the painting when interest rates are at 5% so long as the price he asks for is no greater than
a. $600. b. $576. c. $500. d. $400.
Gabrielle, an Italian citizen, uses some previously obtained dollars to purchase a bond issued by a U.S. company. This transaction
a. decreases U.S. net capital outflow. b. does not change U.S. net capital outflow. c. increases U.S. net capital outflow by more than the value of the bond. d. increases U.S. net capital outflow by the value of the bond.