Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he designs and creates an intricate birdseye maple jewelry box that takes him 15 hours to complete
By how much and in what direction does GDP change as a result of his efforts?
A) GDP rises by $125.
B) GDP is not affected by Scott's production of the jewelry box.
C) GDP rises by $1,875.
D) GDP falls by $1,875.
B
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Duration is
A) an asset's term to maturity. B) the time until the next interest payment for a coupon bond. C) the average lifetime of a debt security's stream of payments. D) the time between interest payments for a coupon bond.
With overnight repos, __________ gain access to short-term funds to lend
A) corporations B) banks C) governments D) consumers
The argument that government action is justified based on the fact that people would agree to be coerced to do the action if everyone else is forced to do the action is essentially an argument based _____
a. upon the transitional gains trap b. on the free rider problem c. on the ideal of the public interest d. prisoners dilemma
The theory of the kinked demand curve is used to explain
A. bizarre corporate behavior. B. sales maximization. C. the maximin criterion. D. sticky prices in oligopolies.