When a corporation issues a bond, it is
A. Lending money to the owners of the corporation.
B. Issuing dividends to shareholders.
C. Borrowing funds from the initial buyer of the bond.
D. Making an initial public offering.
Answer: C
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When allocating resources using market price
A) everyone who is willing and able to pay for a good gets one. B) everyone who wants a good gets one. C) everyone who is willing to pay for a good gets one. D) everyone who is able to pay for a good gets one.
When a country adds more capital to its existing stock:
A. the additional productivity is less than the previous increases to productivity. B. the additional productivity is more than the previous increases to productivity. C. it experiences rapidly increasing rates of growth. D. it experiences rapid declines in its level of income.
Trade between two nations is complicated by
a. the variability in exchange rates of the respective nation's currencies. b. different production techniques in the nations. c. the age and experience of the respective nation's diplomats. d. the variability in climate between the nations.
According to the quantity theory of money, if an economy produces 5,000 units of output, its money supply equals $40,000 and the velocity of money equals one, then the price level will equal:
A. $0.13. B. $1.25. C. $8. D. $200.