If the par value of a bond is $200, and the bid price of the bond is $90, it implies that:
a. the bond is sold at $110.
b. the bond was bought at $110.
c. the bond is trading at a discount of 10 percent of its par value.
d. the bond is trading at 45 percent of its par value.
e. the bond is trading at a premium of 15 percent.
d
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Which of the following best describes marginal cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies, and that must be paid even if output is zero.
Members of the Federal Reserve Board of Governors are appointed to 14-year terms to provide a level of isolation from political influence.
a. true b. false
The rate at which one input can be exchanged for another without altering output is called
A. the marginal rate of technical substitution. B. the slope of the total product curve. C. the law of diminishing returns of labor. D. the slope of the marginal product of labor.
The concave, or bowed-out, shape of the production possibilities curve illustrates the law of increasing opportunity costs.
Answer the following statement true (T) or false (F)