When is the revocation of an offer effective?

A) When received by the offeror
B) When received by the offeree
C) When sent by the offeree
D) When sent by the offeror

The process by which new firms and new products destroy existing dominant firms and their products is called creative destruction.

An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left.

Which of the following statements about a budgeted income statement is not true?

A) The budgeted income statement is prepared after the financial budgets are prepared.
B) The budgeted income statement is prepared on the accrual basis of accounting.
C) The budgeted income statement can be prepared in a multiple-step format.
D) The budgeted income statement is prepared using the individual operating budgets.

___________ is a stock or bond issue that is sold to the general public on a first come, first served basis.

A) An initial public offering.
B) A rights offering.
C) A general cash offering.
D) A seasoned issue.
E) A private issue.

Strategic investments are debt or equity securities that are usually purchased to generate investment income.

Suppose that in a series of paired-choice votes, a new park is preferred to a new recreation center and a new recreation center is preferred to street widening. Also suppose that street widening is preferred to a new park. This set of votes is an example of the

A) principal-agent problem.
B) benefits-received principle.
C) median-voter model.
D) paradox of voting.