A motivation for holding stock is
A. To receive interest payments on the firm's debt.
B. To have a direct role in the operation of the corporation.
C. To own a low-risk, illiquid asset.
D. The anticipation of capital gains.
Answer: D
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The central problem of every economic system is to
A) to transform mere wants into genuine needs. B) get people to cooperate effectively in using what is available to provide what is wanted. C) get people to see that what is available is all that is necessary. D) increase the number of jobs available. E) redistribute income fairly.
When Chile experiences investment from abroad, it experiences, as a result,
a. an increase in productivity. b. a decrease in Gross National Product (GNP). c. lower wages for Chilean workers. d. None of the above is correct.
Firms will try to signal superior quality of their goods by:
A. advertising. B. making sales information available to the public and advertising. C. issuing warranties or guarantees. D. making sales information available to the public.
Assume an economy is in equilibrium at an output level of $600 billion. If government purchases decrease by $75 billion, then at the output level of $600 billion, there is
A. either an unplanned increase or decrease in inventories depending on the value of the MPC. B. an unplanned increase in inventories. C. an unplanned decrease in inventories. D. an unplanned inventory change of zero.