If a corporation issues bonds that it cannot sell, this is an indication that
A. The coupon rate is too low.
B. Dividends are too low.
C. The opportunity cost of the bonds is too low.
D. Expectations of future sales are low.
Answer: A
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The above figure shows the demand curve for dollars in the yen/dollar exchange market. A movement from point A to point B means that the
A) quantity supplied of dollars has increased. B) quantity demanded of dollars has increased. C) quantity demanded of dollars has decreased. D) quantity demanded of yen has decreased.
Scott's Painting Company paints houses. Since Scott's business does not have the name recognition of some of the bigger painting companies, Scott advertises a "Five-Year Money Back Guarantee" to indicate to buyers that his service is of high quality. This guarantee is an example of
a. screening. b. signaling. c. the seller's curse. d. the principal-agent problem.
The voluntary export restraint (VER) is not only a politically attractive way of offering protection to an import-competing industry but is also economically less harmful to the importing country than other trade barriers would be.
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 33.2 below to answer the question(s) that follow.
Table 33.2
Refer to Table 33.2. The most that Thailand will be willing to pay for a tractor is
A. 5 motorcycles. B. 10 motorcycles. C. 15 motorcycles. D. 20 motorcycles.