Sample questions for midterm

Which of the following correctly describes how

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Which of the following correctly describes how corporations raise funds for new investments? Bond holders enjoy the benefits of the corporate profits, whereas stockholders receive interest on their investment. The sale of stock to raise money is called equity finance, whereas the sale of bonds is called debt finance. Compared to stocks, bonds offer the holder both higher risk and potentially higher return. The sale of stock to raise money is called debt finance, whereas the sale of bonds is called equity finance. Consider a closed economy with a government deficit and positive investment. Which of the following is correct? Private saving is negative; public saving is positive. Private and public saving are both positive. Both private saving and public saving are negative. Private saving is positive; public saving is negative. Suppose that the inflation rate is 2% and the real interest rate is 4%. What is the nominal interest rate? 8% 6%. 10%. 2%. Unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills is called structural unemployment. voluntary unemployment. frictional unemployment. cyclical unemployment
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Which of the following includes everyone in the adult population that the Bureau of Labor Statistics counts as “unemployed?” anyone who is not employed, is available for work, has looked for work in the past four weeks, and anyone who is waiting to be recalled from a job from which they have been laid off. anyone who is not employed. anyone who is not employed but is available for work, and anyone who is waiting to be recalled from a job from which they have been laid off. anyone who is not employed, is available for work, and has looked for work in the past four weeks, and anyone who is temporarily absent from work due to weather, illness, or vacation. Refer to the figure. If the government imposes a minimum wage of $5, how many workers will be unemployed? 6,000 0 8,000 4,000
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Jenny earned a salary of $52,000 in 2010 and a salary of $60,000 in 2014. The consumer price index in 2010 was 220.5. The consumer price index was 236.2 in 2014. Jenny's 2010 salary in 2014 dollars is $55,702 $56,012 $50,540 $52,660 By definition, a closed economy does not allow financial intermediation. engages in international borrowing and lending. does not trade with other economies. is centrally-planned. Refer to the table. If the local government imposed a minimum wage of $10 in Crabapple Corners, how many people would be unemployed? 2,000 5,000 0 1,000 BMW's 7% increase in productivity implies that if they previously were able to produce 1200 vehicles per day with 100 workers, they now can produce
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