The primary risk that bondholders face is that:
A. The bond will reduce in price
B. The bond issuer will default
C. Inflation will decrease
D. The rate of return will increase
B. The bond issuer will default
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Firms generally prefer not to outsource product design and manufacturing because:
a. these activities are common and standardized. b. these operations are more or less static. c. these operations involve a low investment. d. these operations require investment in highly specific assets.
Which of the following is an example of a seller?
a. Abrams, Kent, and Wallace, Ltd. provide legal services. b. Charles obtains a part for his automobile. c. Optics, Inc. updates their lens-making equipment. d. Solar, Ltd. hires a top salesperson for its new line of products.
Ad valorem tariffs are
A) import taxes stated in ads in industry publications. B) import taxes calculated as a fixed charge for each unit of imported goods. C) import taxes calculated as a fraction of the value of the imported goods. D) the same as import quotas. E) import taxes calculated solely on the origin country.
One reason to expect higher growth under planned socialism
a. material balance planning b. the dictator's use of coercion c. growth based pricing policy d. the dictator worries about consumption e. the dictator can set a high investment rate