What is the difference between income and wealth?
What will be an ideal response?
Income is a flow variable. It is the amount a household earns over a period of time such as a year. Wealth is a stock variable. It is the amount of assets a household has accumulated at a point in time from past income or through saving or inheritance.
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Which of the following is NOT true about a certificate of convenience and public necessity?
A) It is a barrier to entry. B) It is a patent. C) It is issued by a government agency. D) It limits competition.
In terms of investing, what is suggested by the random walk theory?
a. Future stock prices cannot be predicted. b. Stocks are a safer investment than bonds. c. Long-term investments are risky but necessary. d. Wealthy people are prepared to handle stock risks.
The presence of adverse selection:
A. increases the efficiency of markets. B. reduces the efficiency of markets. C. makes the buyer less efficient and the seller more efficient. D. does not affect the efficiency of markets.
Consider the statement, "The number of hours you slept the night before a test affects your test grade." In this statement
A. both the number of hours slept and test grade are independent variables. B. the number of hours slept is the independent variable and test grade is the dependent variable. C. both the number of hours slept and test grade are dependent variables. D. the number of hours slept is the dependent variable and test grade is the independent variable.