If the annual interest rate printed on the face of a bond is 12 percent, the face value of the bond is $1,000, and the current market price of the bond is $1,200, what is the current yield on the bond?
A. 10.0 percent.
B. 5.0 percent.
C. 12.0 percent.
D. 8.5 percent.
Answer: A
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In the prisoner's dilemma:
A. a cooperative win-win outcome can be predicted. B. a dominant strategy exists for only one player. C. a non-cooperative outcome is predicted. D. All of these statements are true.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
If the government imposes a per-unit tax on sales of an industry's product, then we would expect
A) the supply curve in that industry would shift to the left. B) the supply curve in that industry would shift to the right. C) the demand curve for that industry would shift to the right. D) the demand curve for that industry would shift to the left.
Economic activities primarily directed toward creating or developing new ideas and new technology are called
A. technological diffusion. B. the information revolution. C. innovative activities. D. technological competition.