The yield curve shows
A. the yields on stocks of different maturities.
B. the yields on bonds with differing default risk.
C. the interest rates on bonds of different maturities.
D. the yields on stocks with differing default risk.
Answer: C
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In the figure above, in the market for low-skilled labor, the equilibrium wage rate is
A) $16. B) $8. C) $20. D) $28.
A consumption bundle
A) is a particular combination of consumption and leisure. B) only measures a quantity of goods and services, but not the amount of leisure. C) is a method of bringing home consumption goods. D) measures the quality of a particular good.
According to classical economists, if we use the quantity theory of money equation P = MV / Q, and the growth rate of M equals the Q growth rate,
a. the price level increases b. the price level decreases c. the price level remains unchanged d. velocity is necessarily increased e. M1 is decreased
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.