Which of the following statements is true about investing in stocks and bonds?
A. Issuers of stocks can default on their stock obligations
B. Investing in stocks involve less risk because the future payments are less uncertain
C. In case of bankruptcy, bondholders get paid first ahead of stockholders
D. Bankruptcy occurs when the issuing firm is unable to fulfill its stock obligations
C. In case of bankruptcy, bondholders get paid first ahead of stockholders
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Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.
Refer to the figure below:
Let supply remain constant at S; an increase in the price of a substitute good causes consumers to be willing and able to buy 150 more units of the good at each price in the list than they were when demand was D. Which of the following statements is (are) true?
A. At the original equilibrium price there will be a shortage of 150. B. At the original equilibrium price there will be a surplus of 150 C. At the new equilibrium P = $6 and Q = 450. D. At the new equilibrium P = $7 and Q = 400. E. both a and d