The maturation date of a bond is the date at which:
A. the principal will be repaid.
B. dividend payments will be made.
C. taxes on the bond are due.
D. coupon payments will be made.
Answer: A
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An earthquake destroys a good portion of the capital stock. How would you expect this to affect the capital—labor ratio in the long run? There would be
A) a rightward movement along the saving-per-worker curve and an increase in the capital—labor ratio. B) no change in the long-run capital—labor ratio. C) a downward shift in the saving-per-worker curve and a decrease in the capital—labor ratio. D) a leftward movement along the saving-per-worker curve and a decrease in the capital—labor ratio.
The continued position of the United States as the world's economic leader is:
a. assured b. predictable c. automatic d. uncertain
A monopolistic competitive firm:
a. will always earn monopoly profits. b. will never earn monopoly profits. c. may earn monopoly profits in the short run. d. may earn monopoly profits in the long run.
When United States residents acquire assets abroad, they are in essence
A. borrowing money, and foreign debts to the United States decrease. B. lending money, and foreign debts to the United States decrease. C. borrowing money, and foreign debts to the United States increase. D. lending money, and foreign debts to the United States increase.