Which of the following is not a nonsensical headline?
a. British perpetuities about to mature.
b. Disney issues new bonds with term of 7 percent.
c. Corporate bonds currently pay higher interest rates than government bonds.
d. Standard and Poor's judges new junk bond to have very low credit risk.
c
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Dan bought $10,000 of stocks in Orange, a fruit company. Gump invested $10,000 in a mutual fund that included Orange in its portfolio, while Bubba bought Orange's bonds worth $10,000 . If Orange makes a huge profit, which of the following would be true? a. Both Dan and Gump will make profits on their respective investments, while Bubba will suffer a loss. b. Gump will earn more profits on his
investment than either Dan or Bubba. c. Dan will earn more profits on his investment than either Gump or Bubba. d. All three will earn the same amount of profit since they each have invested the same amount.
A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost
a. True b. False Indicate whether the statement is true or false
Which of the following was one the key factors sending the economy into the Great Recession?
a. declining home prices and rising foreclosure rates b. declining interest rates and declining lending c. declining labor participation rates and rising retirement rate d. none of the above were reasons for the Great Recession
Arrow's impossibility theorem is not relevant to modern analysis of political economy.
A. True B. False C. Uncertain