The key difference between the primary and secondary bond markets is that __________ bonds are traded on the primary market, while __________ bonds are traded on the secondary market
a. newly issued; previously issued
b. government; corporate
c. more valuable; less valuable
d. low risk; high risk
e. high yield; low yield
A
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Monetarists are of the opinion that the private economy is inherently
A. unstable and the public sector should be small in scope. B. unstable and the public sector should be large in scope. C. stable, but that the public sector should be large in scope. D. stable and that the government sector should be small in scope.
Which of the following best illustrates the fallacy of composition? a. If the price of a product rises, the quantity supplied will decline
b. The average wage rate tends to increase at approximately the same rate as inflation; hence, wage increases must cause inflation. c. Resources are scarce; therefore, there is no such thing as a free lunch. d. If I talk loudly at a party, I have a better chance of being heard by my listeners. If everyone at the party talks loudly, everyone can be heard more clearly.
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
A lump-sum tariff imposed on foreign competitors will:
A. decrease the profits of domestic firms when demand is high. B. have no impact on domestic firms' profits when demand for domestic goods is high. C. increase the profits of domestic firms when demand is high. D. always remove foreign competitors from the market.