Briefly describe the two different types of junk bonds (high-yield bonds).
What will be an ideal response?
There are two types of junk bonds; there are the fallen angels, which were at one time investment grade bonds, but their issuer fell on hard times. The second type results because little is known about the issuer. These bonds originate as junk bonds.
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Collective bargaining by unions can result in a union wage rate that is ________ the equilibrium real wage rate and creates a ________ of labor
A) below; shortage B) above; shortage C) below; surplus D) above; surplus E) equal to; surplus
The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is $500 per week and total fixed costs are $600 per week. What is the total cost of producing 70 units?
A) $1,700 B) $1,900 C) $2,100 D) $2,300
When and under what circumstances is intervention in international trade justified on market correction grounds? What preconditions would have to be met from the government side for there to be a reasonable likelihood of success?
What will be an ideal response?
You use $40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of
A. -$1,200. B. $1,200. C. $2,000. D. $3,200.