If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs. a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These

b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower.

Which of the following statements is correct? a. A corporation receives a monetary payment every time its shares of stock are traded by stockholders on organized stock exchanges. b. When a corporation sells bonds as a means of raising funds it is enga

b. When a corporation sells bonds as a means of raising funds it is engaging in debt finance.

On which of these bonds is the prospect of default least likely? a. a junk bond b. a bond issued by the state of Arizona c. a bond issued by the federal government d. a bond issued by General Electric Corporation

c. a bond issued by the federal government

Which of the following statements is correct? a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money. b. A general, persistent decline in sto

b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.

A stock index is a. an average of a group of stock prices. b. an average of a group of stock yields. c. a measure of the risk relative to the profitability of corporations. d. a report in a newspaper or other media outlet on the price of the stock

a. an average of a group of stock prices.

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Macroeconomics Final

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Question	Answer
When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures a. capital investment. b. investment in human capital. c. business consumption expenditures. d. personal saving.	a. capital investment.
If you were to start a business delivering documents, you might need to purchase cell phones, bicycles, desks, and chairs. a. These purchases are called capital investment. If you raise the funds to purchase them from others you are a saver. b. These	b. These purchases are called capital investment. If you raise the funds to purchase them from others you are a borrower.
Which of the following statements is correct? a. A corporation receives a monetary payment every time its shares of stock are traded by stockholders on organized stock exchanges. b. When a corporation sells bonds as a means of raising funds it is enga	b. When a corporation sells bonds as a means of raising funds it is engaging in debt finance.
On which of these bonds is the prospect of default least likely? a. a junk bond b. a bond issued by the state of Arizona c. a bond issued by the federal government d. a bond issued by General Electric Corporation	c. a bond issued by the federal government
Which of the following statements is correct? a. A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money. b. A general, persistent decline in sto	b. A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
A stock index is a. an average of a group of stock prices. b. an average of a group of stock yields. c. a measure of the risk relative to the profitability of corporations. d. a report in a newspaper or other media outlet on the price of the stock	a. an average of a group of stock prices.

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