Midwestern corporation issues bonds. Southern corporation issues stock. Which corporation used equity financing?
a. both Midwestern corporation and Southern corporation
b. Midwestern corporation but not Southern corporation
c. Southern corporation but not Midwestern corporation
d. neither Midwestern nor Southern corporation
c
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In the income-expenditure model, the 45-degree line
A) shows total expenditures at various price levels. B) marks all equilibrium output levels. C) is also called the planned expenditures line. D) is the locus of all the points for which output equals expenditures.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for potatoes and that steak and potatoes are complements. What panel describes what happens in this market when the price of steak rises?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
If the government decides to build a new highway, the first step would be to conduct a study to determine the value of the project. The study is called a
a. budget analysis. b. project analysis. c. reimbursement analysis. d. cost-benefit analysis.
Which of the following does not explain the "beauty premium" differences in wages?
a. Better-looking people are preferred by customers; thus, employers will pay them higher wages than average-looking people. b. Beauty may be an indirect measure of other abilities that employers value. c. Average-looking people are preferred by customers; thus, employers will pay them higher wages than better-looking people. d. Employers discriminate in favor of better-looking people.