A security that pays the holder, should mortgage borrowers fail to repay their debts, is a
A. traditional, thirty-year fixed-rate mortgage.
B. credit-default swap.
C. pay-option adjustable-rate mortgage.
D. thirty-year U.S. Treasury bond.
Answer: B
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Which of the following will cause an increase in the marginal product of capital (MPK)?
A) a decrease in the quantity of labor in use B) an increase in labor productivity C) a decrease in the quantity of capital in use D) all of the above E) none of the above
A graph is a
a. lengthy, inefficient, and inconvenient way to illustrate information b. diagram illustrating a relationship between variables c. method of proving causation d. tool for incorporating all major and minor variables in one illustration e. clear way to see how the fallacy of composition works
An organization with hierarchy
A) is needed to define property rights between knowledge workers. B) remains an effective way to manage knowledge workers. C) is not an effective way to manage knowledge workers. D) none of these choices.
The reason why weaker firms accept price leadership is that they
a. maximize profit that way b. get an equal share of the market c. can collude to eventually challenge the dominant firm d. are protected from price competition e. can lower their prices to increase market share without upsetting the price leader