You own shares in a start-up internet company. If the company announces that it will not pay dividends next year as it has in the past, then the price of your shares will ________, holding other factors constant.
A. decrease
B. not change
C. either increase or decrease
D. increase
Answer: A
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Consumer surplus
a. is closely related to the supply curve for a product. b. is represented by a rectangle on a supply-demand graph when the demand curve is a straight, downward-sloping line. c. is measured using the demand curve for a product. d. does not reflect economic well-being in most markets.
Answer the following statement(s) true (T) or false (F)
1. Most societies share the same three major macroeconomic goals. 2. News of changes in unemployment figures has little effect on the stock market. 3. Unemployment begins to fall as soon as a recession ends. 4. The U.S. Department of Labor considers discouraged workers unemployed. 5. The unemployment rate varies between men and women.
Suppose at the current level of labor used, MRP = $100 and MFC = $50. To maximize profits, the firm should
A) hire more labor. B) reduce the level of labor. C) maintain the current level of labor. D) shut down.
Supply-side policy is based on the assumption that people's economic behavior is not affected by taxes
a. True b. False Indicate whether the statement is true or false