Why is it important to use real rather than nominal GDP figures when making comparisons of output across time periods
What will be an ideal response?
The real figures will reflect changes in the quantity of output and not changes in the general level of prices
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The greater the number of buyers and sellers with access to securities markets, the
A) higher the true equilibrium price will be. B) higher the yields on securities will be. C) lower the yields on securities will be. D) closer securities prices will be to the true equilibrium price.
Hostile takeovers of corporations have been in the business news for some time now. Several states have passed laws making it harder for out-of-state corporations to acquire firms headquartered in their states. Several corporations have established
"golden parachutes" to give executives high payoffs in case of hostile takeover. What market imperfection is likely to be worsened by these actions? Explain.
A $5 tax levied on the buyers of pants will cause the
a. supply curve for pants to shift down by $5. b. supply curve for pants to shift up by $5. c. demand curve for pants to shift down by $5. d. demand curve for pants to shift up by $5.
The economic contribution of a sports franchise to a community is roughly on the same order of magnitude as a
A. new McDonald's on a city street. B. a new automobile factory. C. a hotdog stand. D. a new Walmart Supercenter.