The key difference between a share of stock and a bond is that
a. a share of stock is a riskless asset
b. the holder of a bond receives only one future payment
c. the holder of a share stock has a share in the ownership of a firm
d. bonds are issued only by the government, while stock is issued only by corporations
e. there are secondary markets for stocks, but not for bonds
C
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Describe the characteristics of an efficient contract between a principal and an agent
What will be an ideal response?
Samia has decided that with the two hours in between classes she can do one of 3 things. She has ranked her choices, from highest to lowest as, (1 ) chat with her friends, (2 ) study economics or (3 ) take a nap
The opportunity cost of chatting with her friends is A) the combined value of studying economics and taking a nap. B) the value of studying economics, the next best use of time. C) the value of chatting with her friends. D) zero since she does not pay her friends to talk to her.