The ________ a corporation keeps to finance future expansion are known as retained earnings
A) profits
B) stock
C) dividends
D) bonds
Answer: A
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If I own a share of stock in IBM, I own
a. only the right to vote in elections of corporate directors b. a claim to a share of IBM's assets and earnings as well as the right to demand annual dividend payments c. the right to demand annual dividend payments as well as the right to vote in elections of corporate directors d. only the right to demand annual dividend payments e. a claim to a share of IBM's assets and earnings as well as the right to vote in elections of corporate directors
If a monopoly firm is continually earning above-normal profits, then
a. the entry of new firms will reduce profits to normal in the long run b. the profits may remain above-normal in the long run despite the entry of new firms c. market forces other than the entry of new firms will reduce profits to normal in the long run d. falling market demand due to the firm's high prices will reduce profits to normal in the long run e. barriers to entry may enable the profits to remain above-normal in the long run
Refer to the graph below, which shows the market for bicycles. S1 and D1 are the original supply and demand curves. D2 and D3 and S2 and S3 are possible new demand and supply curves. Starting from the initial equilibrium (point 1), which point on the
graph is most likely to be the new equilibrium after the introduction of technological improvements in bicycle production, and successful publicity campaigns by the government on the virtues of bicycling to work?
A. 3
B. 4
C. 5
D. 6
According to Classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a
A. surplus of labor and wages will fall. B. shortage of labor and wages will fall. C. shortage of labor and wages will rise. D. surplus of labor and wages will rise.