QUESTION 15

1. If the income distribution becomes more equitable, the Lorenz curve moves ____________ the line of equal distribution of income and the Gini coefficient __________.

A.closer to; rises

B.farther away from; declines

C.closer to; declines

D.farther away from; rises

3.23 points

QUESTION 16

1. When a firm distributes its profit to the shareholders, the shareholders receive ______________ from the firm.

A.venture capital

B.dividends

C.stocks

D.bonds

E.financial capital.

3.23 points

QUESTION 17

1. Venture capital firms typically target mature firms that are struggling to maximize profits or are on the verge of bankruptcy.

True

False

3.23 points

QUESTION 18

1. A business woman started a new business that is likely to make a high profit .There is also a possibility that the business could fail. From which of the followingis the woman most likely raise money to fund her business?

A.venture capital

B.insurance company.

C.hedge fund.

D.bank.

E.pension fund.

3.23 points

QUESTION 19

1. Individuals who have made an investment in human capital tend to be more productive than individuals who do not.

True

False

3.23 points

QUESTION 20

1. A free rider is a person who:

A.consumes demerit goods.

B.uses private goods without paying for them.

C.uses the public transportation system without paying for it.

D.benefits from consuming public goods without paying for them.

3.23 points

QUESTION 21

1. The tragedy of the commons is MOST associated with:

A.common property resources.

B.pure public goods.

C.pure private goods.

D.public goods with exclusion.

3.23 points

QUESTION 22

1. Which of the following is the BEST example of a common property resource?

A.an army base

B.lobsters off the coast of Maine

C.an international airport

D.a hospital

3.23 points

QUESTION 23

1. During what decade were U.S. poverty thresholds developed?

A.the 1930s

B.the 1970s

C.the 1950s

D.the 1960s

3.23 points

QUESTION 24

1. What is Initial Public Offering (IPO)?

A.It is a firm's first stocksale to the public.

B.It is the amount of money that a publicly traded firm pays to itsstock holders.

C.It is the first dollar amount thata stock holder receives from a firm in which the stock holder has initially invested.

D.None of of these is correct answer.

E.It is a first payment that a firm pays to a bond holder.

3.23 points

QUESTION 25

1. Which of the following is the riskiest financial asset?

A.Stocks

B.Money in savings account.

C.Money in checking account

D.All of these have the same risk.

E.Bonds

3.23 points

QUESTION 26

1. Suppose the interest rateis 4% per year. How much is the present value of $1,400 in four years?

A.$1,244.60

B.$1,358.00

C.$1193.73

D.$1,575.71

E.$1,243.88