A firm's short-run cost curves will shift upward if there is a

• A.technological improvement or an increase in the price of a productive resource.
• B.downward shift in total product or an increase in the price of a productive resource.
• C.technological improvement or a decrease in the price of a productive resource.

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An investor is currently considering the choice between a corporate and a municipal bond. The yield on these two bonds is given below.
Securities: Yield 10-year corporate bond: 6.43 10-year municipal bond: 5.20
The investor's marginal tax rate is 28%. What is the taxable equivalent yield on municipal bond?

• A.7.22
• B.5.1
• C.6.66

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Kiawah Corp. sold bonds at a price of 96.2 plus accrued interest. At the time of this issuance, the carrying value of the bonds would be less than: Face Value of the Bonds : Cash Received by Kiawah
(ignore fees)

• A.Yes : Yes
• B.Yes : No
• C.No : Yes

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Which one is an inferior good?

• A.A Veblen good.
• B.A Giffen good.
• C.None of them.

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Including costs in inventory that should be expensed will:

• A.overstate profitability and inventory.
• B.overstate profitability and understate inventory.
• C.understand profitability and overstate inventory.

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