Which of the problems in the construction of the cpi might be illustrated by each of the following situations? explain.
a. the invention of the sony walkman b. the introduction of air bags in cars c. increased personal computer purchases in response
to a decline in their price d. more scoops of raisins in each package of raisin bran
e. greater use of fuel-efficient cars after gasoline prices increase

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.