Other things being constant, when a firm sells new shares of stock, the
a. supply of the stock increases and the price decreases.
b. supply of the stock decreases and the price increases.
c. demand for the stock increases and the price increases.
d. demand for the stock decreases and the price decreases.
a
Economics
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John takes out a student loan at a bank but spends his money in Las Vegas to play at the casino. This situation is an example of
A) moral hazard. B) moral suasion. C) adverse selection. D) fraud.
Economics
When a firm ignores the opportunity cost of capital when making investment or shutdown decisions, this is a case of
a. Fixed-cost fallacy b. Sunk-cost fallacy c. Hidden-cost fallacy d. None of the above
Economics