The issuer of a bond is a
A) borrower.
B) creditor.
C) saver.
D) lender.
A
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Refer to Figure 5-4. What does S1 represent?
A) the market supply curve that reflects private cost B) the market supply curve that reflects only private benefit C) the market supply curve that reflects only external cost D) the market supply curve that reflects social cost
A government ban on a good that suffers from overconsumption may be ineffective if the:
A. likelihood of being caught breaking the ban is sufficiently high. B. likelihood of being caught breaking the ban is very low. C. punishment for breaking the ban is severe. D. public did not participate in setting the punishments.
What is the major neoclassical assumption?
a. Prices are flexible. b. Prices are sticky. c. Prices are rigid. d. Prices do not change.
Steven lives in a big city where there is a shortage of parking spots. He has a parking spot in his driveway where he parks his car. Which of the following statements is most correct?
A. Steven has a lower opportunity cost of owning a car than his neighbor, who must rent a parking spot. B. The opportunity cost of using the spot is zero, because Steven owns the house. C. The opportunity cost of using the parking spot is the price he could charge someone else for using the spot. D. The opportunity cost depends on how much Steven's mortgage payment is.