Bonds differ from stocks in all of these ways except:
a. a purchase of corporate stock becomes a part owner of the corporation, while a bondholder does not
b. a bondholder loans money to the corporation, which has priority for repayment, while a stockholder may lose her investment
c. stockholders know with a high degree of certainty how much money they will get, while bondholders do not
d. all of these are correct
d
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Unlike in the long-run model, in the short-run - Keynesian model, we make two critical assumptions: that firms adjust production depending on ___ , and that ____
a. total demand; prices are fixed b. resource limitations; prices are flexible c. the market rate of interest; consumers maximize utility d. consumer spending; there is full employment
The justification for the patent system is that it
a. protects desirable monopolies b. encourages innovation c. discourages the development of substitute goods d. guarantees high profit for the monopolies so that they can use the profit as a source for research and development e. discourages competition