Stockholders normally obtain higher expected payments than bondholders because
a. they are required by law to obtain a higher return.
b. they face higher risk.
c. the profit share declared as stock dividends is not taxable.
d. they vote themselves higher returns.
b
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Ken and Traci are two woodworkers who both make tables and chairs. In one month, Ken can make 3 tables or 18 chairs, whereas Traci can make 8 tables or 24 chairs. Given this, we know that the opportunity cost of 1 chair is
a. 1/6 table for Ken and 1/3 table for Traci. b. 1/6 table for Ken and 3 tables for Traci. c. 6 tables for Ken and 1/3 table for Traci. d. 6 tables for Ken and 3 tables for Traci.
Under a per se approach to the antitrust laws,
A. the government must prove some anticompetitive outcome from the act. B. large size alone can be an antitrust violation. C. the action will pass antitrust scrutiny if it is shown to be reasonable. D. the only real question is whether the prices charged are reasonable.
For a monopolistically competitive firm, the firm's demand curve is:
A. downward sloping. B. horizontal. C. upward sloping. D. None of these
Refer to the given data, symbols, and assumptions. At the current wage rate, the combined number of workers in the two nations is:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. 2.
B. 3.
C. 5.
D. 4.