When interest rates in the economy fall, the prices of previously issued bonds
A. must fall.
B. must change but may either rise or fall.
C. must rise.
D. may remain unchanged.
Answer: C
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Gross domestic product is a measure of
A. the size of the largest industry in an economy. B. the money value of all final goods and services produced in a year by the economy. C. the volume of goods and services, which involved in international trade. D. the goods and services produced strictly by corporations. E. the nonmarket production of goods and services.
Which of the following will be counted as an investment expenditure in the measurement of GDP?
A) purchase of a tractor by a farmer from his neighbor B) purchase of preferred stock in ABC Corporation C) purchase of a newly built tractor by a college fraternity for hay rides at their charity fair D) purchase of an apartment in a newly-built building E) purchase of newly built computers by a municipal government
How are daily gains and losses settled in the futures market?
A. Gains and losses are not realized until the party either accepts delivery or delivers the product at the end of the contract. B. Through withdrawals and deposits in the owners' personal savings account. C. Through withdrawals and deposits in the margin account. D. Through direct cash transfers between the buyer and a seller of each contract.
An economic system that permits the conduct of business with minimal government intervention
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism