Which of the following statements is true?
A) The more liquid the bond, the lower the yield.
B) Tax-free bonds normally have a higher interest rate than other types of bonds.
C) The price of a bond increases as it becomes more risky.
D) The yield curve illustrates the relative default risks of alternative types of bonds.
A
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The AE curve illustrates the relationship between
A) real GDP and actual expenditure. B) the interest rate and aggregate planned expenditure. C) real GDP and the interest rate. D) aggregate planned expenditure and real GDP. E) the quantity of real GDP demanded and the price level.
Refer to the figure above. Suppose Starbucks charges $3.50 per cup for its latte. Which of the following is true?
i. At this price, the demand for Starbucks latte is inelastic. ii. If Starbucks raises the price of its latte, its revenue will increase. iii. If Starbucks lowers the price of its latte, it will increase its revenue. A) Only iii B) Only i C) Only ii D) i and ii E) i and iii
Refer to the table shown. The marginal product of the third worker is:Number of workersMarginal product of workers1225394145166177188189171015
A. 2. B. 17. C. 9. D. 8.
The observation that beyond some point, successive increases in a variable factor of production added to a fixed factor of production lead to smaller and smaller increases in output is
A. the law of diminishing marginal product. B. the law of averages. C. the law of opportunity costs. D. the law of marginal utility.