Which of the following statements is true?
A) The future growth of a stock is more certain than the payments of a bond.
B) Differences of opinion about a bond's future may vary considerably but there is less difference about a stock's future.
C) A stock can possibly pay dividends forever, but bonds have a fixed number of payments.
D) Bonds represent partial ownership in a firm but stocks do not.
C
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In 1994, the state of California suffered a devastating earthquake. To help pay for the damages, the state raised its sales tax by one cent per dollar of expenditure on most consumer goods
This state sales tax is an example of what economists call: A) an ad valorem tax. B) a specific tax. C) a neutral tax. D) a negative tax. E) none of the above
Carlos is an executive of a major corporation. Boris is a baker. Carlos earns a salary ten times as large as the salary Boris earns, and Carlos has a much larger oven for baking break
Carlos can make a loaf of bread that tastes better than Boris's bread but Boris can bake faster. A) Carlos has an absolute and comparative advantage over Boris in making bread. B) Carlos has an absolute but not comparative advantage over Boris in making bread. C) Carlos had a comparative but not absolute advantage over Boris in making bread. D) Carlos does not have an absolute or comparative advantage over Boris in making bread.
A builder is planning to construct to a departmental store with an investment worth $1,200 . He receives proposals from two retailers interested to lease space in it assuring him future cash flows worth $1,000 at the end of the first year and $700 at the end of two years. If the building lasts only for two years and the discount rate is 15 percent, what would be the net present value of this
project? a. $300.50 b. $257.63 c. $198.67 d. $118.38
What do economists mean by “rent seeking” among producers?
a. leasing space to foreign producers who want to house imported goods b. efforts to gain profits from government tariffs and import quotas c. investments in foreign companies holding licenses to import goods d. lobbying to keep foreign competition out of the domestic market