If the principal amount of a bond is $10,000,000, the coupon rate is 7%, and the inflation rate is 4%, then the annual coupon payment made to the holder of the bond is:
A. $700,000.
B. $70,000.
C. $400,000.
D. $300,000.
Answer: A
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In a housing market with a rent ceiling set below the equilibrium rent,
A) some people seeking an apartment to rent will not be able to find one. B) the total cost of renting an apartment will decrease for all those seeking housing. C) some landlords will not be able to find renters to fill available apartments. D) search will decrease because renters no longer need to search for less expensive apartments. E) None of the above answers are correct because to have an impact, the rent ceiling must be set above the equilibrium rent.
Economies of scale exist when the ________ a unit of a good ________
A) average cost of producing; falls as its output rate increases B) price; falls as its input rate decreases C) price; rises as its output rate increases D) average cost of producing; rises as its input rate increases
In repeated games, all of the following allow a firm to escape an inefficient "prisoners dilemma" equilibrium except
a. Be nice, don't strike first b. Respond immediately to non-cooperation c. Punish competitors as much as you can d. Make sure your competitors can easily interpret your actions
Positive statements are descriptive, while normative statements are prescriptive
a. True b. False Indicate whether the statement is true or false