Companies issue stock because of all of the following except:
A. it allows the owners to raise capital without having to borrow.
B. it allows the owners to turn an illiquid asset into a liquid one.
C. it allows the owners to share the risk of failure.
D. it allows companies to file bankruptcy.
Answer: D
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If real GDP was 100 in 2015 and 104.4 in 2016, the growth rate of real GDP between 2015 and 2016 was
A) 2.2 percent. B) 4.4 percent. C) 100 percent. D) 102.2 percent.
If you expect a general price increase of 5% this year and the price of the hamburgers you sell increases by 10%, you would conclude that the relative price of your good has
A) declined, and you would increase your output. B) declined, and you would decrease your output. C) increased, and you would increase your output. D) increased, and you would decrease your output.