Question

The primary risk of owning a mortgage is that the lender will default on the mortgage obligation. True or False? And Why?

Firm ABC sells calculator. It operates in a plant worth 2,500,000 and maintains production equipment worth $5,000,000. Currently, it has 175,000 calculators in reserved inventory that it plans to sell next month to retail stores for $60 each. Its board of directors has $1.50 million in government bonds and $115,000 in savings for use as payroll and emergency funds. In addition, ABC employs several whose collective worths in terms of skill and knowledge is equal to$290,900.
The capital stock of the firm ABC is $_____

In all competitive labor markets, firms will hire additional workers only if the value of their products exceeds the relevant market wage. True or False? And why?

Answer 1

True : Borrower mortgage may go into default and mortgage lender may sell the obligation through Power of Sale to cover the debt, or become the owner through foreclosure.

In economics, capital stock is the plant, equipment, and other assets that help with production.Lately, financial capital, human capital and social capital have also been included in the definition of economy’s capital stock to make it more inclusive.
Capital stock of the firm ABC= ( 2500000+ 5000000+10500000+1500000+115000+290900)

= $ 19905900

True: In all competitive labor markets, firms will hire additional workers only if the value of their products exceeds the relevant market wage.