Which of the following does not take place in the direct finance market?
A) Ownership in corporations is sold in the form of common stock.
B) Deposits from savers are accumulated and loans made to borrowers.
C) Ownership in corporations is sold in the form of preferred stock.
D) Corporate bonds are sold to savers.
Answer: B
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A Lorenz curve graphs the
A) percentage of income or wealth against the percentage of households. B) cumulative percentage of income or wealth against the cumulative percentage of households. C) cumulative value of income against the cumulative percentage of households. D) percentage of wealth against the percentage of income.
The fact that positive externalities may exist in education is not enough to justify government involvement. To justify government involvement, it must be shown that _____
a. the effect of the externalities are large b. the externalities are inframarginal c. people do not internalize the externalities d. education is an investment good
A Chinese restaurant buys 10 cups of rice for $1; soy, fish and oyster sauces for $1 each; and assorted vegetables for $20. They create 10 meals with these ingredients and sell each one for $5. How much does this process contribute to GDP?
A. $23 B. $50 C. $73 D. $27
When the demand for a country's exports increases, its export function _____
a. shifts upward b. shifts downward c. rotates upward d. rotates downward