Owners of a corporation ________ through dividend payments on shares of that firm's stock
A) retain earnings of the firm
B) issue bonds for the firm
C) share in the profits of the firm
D) indirectly finance the firm
Answer: C
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Microeconomics is the study of ________
A) the choices that individuals and businesses make B) all aspects of scarcity C) the global economy D) the national economy
Allocative efficiency best explains ________, and productive efficiency best explains ________
A) why something will be produced; what will be produced B) what will be produced; how something will be produced C) how something will be produced; when something will be produced D) when something will be produced; why something will be produced
Risk management in command economies:
A. is easy because there is no risk. B. is easy because the government controls most activity and can eliminate risk. C. tends to be done poorly because government officials do not understand risk. D. tends to be done poorly because decision makers are insulated from the risk of making a poor decision.
A government official observes that there has been a short-run increase in the price level. The increase in the price level could have been caused by:
A. a positive demand shock that increased GDP. B. a positive supply shock that increased GDP. C. a negative supply shock that decreased GDP. D. a negative demand shock that decreased GDP.