A distinction between stocks and bonds is that
A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange.
B) stocks represent ownership claims to the company and bonds do not.
C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time.
D) bonds can be traded many times in the bond market, while stocks are non-transferable.
E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.
B
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In the United States decisions to increase interest rates are made by the ________ and decisions to increase taxes are made by ________.
A. Congress; the Federal Reserved. B. the Federal Reserve; Congress C. Congress; Congress D. the Federal Reserve; the Federal Reserve
When a monopolistically competitive firm breaks even in the long run, this is equivalent to earning a zero accounting profit
Indicate whether the statement is true or false
If a firm in a perfectly competitive market faces a market price of $4, and it decides to produce 700 units, the firm's average revenue will be:
A. $175. B. $2,800. C. $4. D. $700.
Gertie saw a pair of jeans that she was willing to buy for $35. The price tag, though, said they were $29.99. Therefore:
A. Gertie should buy the jeans because the price is less than her reservation price. B. Gertie should buy the jeans because the price is more than her reservation price. C. Gertie should not buy the jeans because the price is not equal to her reservation price. D. Gertie should not buy the jeans because they will be of lower quality than she expected.