Using the Gordon growth model, if D1 is $.50, ke is 7%, and g is 5%, then the present value of the stock is

Which of the following statements refers to rent seeking?

A) "The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929." B) "Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws." C) "The federal government should spend more money on programs that help low income citizens and less money on national defense." D) "There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program."

The virtual currency battle between Facebook and Zynga reminds us that:

a. Relatively small companies with virtual currencies, like Zynga, have little chance of challenging the demands of large companies, like Facebook, with virtual currency platforms. b. In the future, virtual currencies will be created, destroyed, and evolve in many different ways. c. Community really does follow commerce. d. To gain widespread trust and usage, a virtual currency does not need a large base of users.