Indicate what happens to the unemployment rate and the labor-force participation rate in each of the following scenarios. Scenario Effect On... Unemployment Rate Labor-Force Participation Rate After an unsuccessful job search, Carlos gives up looking and retires. Deborah is on maternity leave and will resume working in two months. Felix has a birthday, becomes an adult, and starts looking for a job. Janet dies while enjoying retirement.

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.