If wealth rises,
A. The AD curve will shift to the left.
B. There will be a movement to the left along the AD curve.
C. There will be a movement to the right along the AD curve.
D. The AD curve will shift to the right.
Answer: D
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Junk bonds, bonds with a low bond rating, are also known as
A) high-yield bonds. B) investment grade bonds. C) high quality bonds. D) zero-coupon bonds.
If rapid population growth reduces the amount of capital per worker, thereby lowering labor productivity, it is referred to as:
a. age dependency. b. capital budgeting. c. investment diversion. d. capital disinvestment. e. capital shallowing.
Which of the following is a determinant of the price elasticity of demand for a product?I.The existence of substitute goodsII.The percentage of a consumer's total budget devoted to purchases of that commodity
A. I only B. II only C. both I and II D. neither I nor II
Which of the following is NOT an advantage of firm coordination of economic activity?
A) Firm coordination decreases transactions costs. B) When firms coordinate economic activity, there are no opportunity costs. C) Firms can take advantage of the economies of team production. D) Economies of scope can be realized by firms that produce a range of goods and services that share specialized resources.