In 2003, ratings agencies downgraded bonds issued by the State of California several times. How will this affect the market for these bonds?
A. The yield on these bonds will not change, nor will the yield on Treasury bonds.
B. The yield on these bonds and on Treasury bonds will both decrease.
C. Yields on these bonds will decrease and the yield on Treasury bonds will increase.
D. Yields on these bonds will increase.
Answer: D
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Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is
A) 10 percent. B) 10/70 × 100. C) 10/80 × 100. D) There is not enough information provided to calculate the unemployment rate.
Suppose you spent your entire budget on goods so that the marginal utility per dollar spent on each is identical. Which of the following is true? a. Your purchases are not efficient because there is no reason why you should buy the same quantity of each
b. You can increase your total utility by shifting income from low marginal utility generating goods to higher marginal utility generating ones. c. You will reduce your total utility if you allocate income in any other way. d. You are minimizing your marginal utility this way, which is what you want. e. You can avoid diminishing marginal utility.
Suppose a company wanted to try to improve the health of its workers as part of its health initiative program. When constructing a new building, it decides to put the elevators significantly farther than the stairs from the main entrance. This would be considered as an example of a(n):
A. push. B. irrational behavior. C. laissez-faire policy. D. nudge.
The Stogie Shop, a cigar store in the mall, sells hand-rolled cigars for $10.00 and machine-made cigars for $2.50 each. What is the opportunity cost of buying a hand-rolled cigar?
A) 4 machine-made cigars B) one-quarter of a machine-made cigar C) $10.00 D) $2.50