A corporate bond is issued when a corporation ____________ and promises to pay ____________
a. sells stocks; future profit
b. sells stocks; agreed upon interest
c. sells common shares; future profit
d. borrows money; the principal and interest
e. lends money; the principal and interest
D
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For a monopoly, marginal revenue for all units greater than 1:
A. is always less than the price. B. cannot be negative. C. is zero when total profits are maximized. D. is always greater than marginal cost.
Which of the following states the definition of supply?
a. More of a good is supplied at a lower price. b. There is a positive relationship between the price of a good and the quantity that buyers purchase. c. There is a positive relationship between the price of a good and the quantity offered for sale by suppliers. d. There is a negative relationship between the price of a good and the quantity offered for sale by suppliers.
Lorenz curves supposedly reflect the disparities of standards of living among people living in a society but they cannot take into account factors that can greatly affect the disparities. Among them are all the following except
a. the size of population b. the availability of public housing and housing subsidies c. national health care systems d. national education systems e. social security programs
"The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent
light bulbs fell the demand for incandescent light bulbs decreased even further." Evaluate this statement. A) The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease. B) The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluorescent light bulbs fell. C) The statement is false because compact fluorescent light bulbs producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits. D) The statement is false because it confuses the law of demand with the law of supply.