People who buy stock in a corporation such as General Electric become
a. creditors of General Electric, so the benefits of holding the stock depend on General Electric's profits.
b. creditors of General Electric, but the benefits of holding the stock do not depend on General Electric's profits.
c. part owners of General Electric, so the benefits of holding the stock depend on General Electric's profits.
d. part owners of General Electric, but the benefits of holding the stock do not depend on General Electric's profits.
c
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Which of the following is(are) the characteristics of a bubble
a. Bubbles emerge when investors disagree about the particular economic importance of an event b. Bubbles involve very large increases in trading volume c. Bubbles may continue even when many expect a bubble and doesn't pop until a sufficient number of skeptical investors act simultaneously d. All of the above
According to the Ricardian model, the source of comparative advantage is:
a. differences in labor productivity in the different countries. b. differences in foreign trade policies followed by the governments of the various countries. c. differences in resource endowments of the economies. d. differences in the fields of research and development in the countries. e. differences in the taste and preferences of the consumers in the different countries.