Per Capita Real GDP Is a Questionable Indicator of the State

question 11

Multiple Choice

Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:

• A)growth of national income.
• B)changes in inflation.
• C)income distribution.
• D)changes in the size of the population.
• E)changes in the level of output.

Understand the concepts of buying on margin and short selling, including the calculations related to margin calls.

Comprehend the roles and processes involved in the issuance of new stocks including the roles of investment bankers.

Know the various costs associated with buying and selling stocks.

Understand the different types of orders investors can place when buying or selling stocks.

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Definitions:

Corporate Bond

A type of bond issued by corporations to fund capital investments and operations, promising to pay back with interest.

Yield

The income return on an investment, such as the interest or dividends received from holding a particular security.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, which indicates its value at issuance or maturity.

Dividend Payments

Payments made by a corporation to its shareholder members, usually derived from the company's profits.