What is the return on a 5 percent coupon bond that initially sells for $1,000 and sells for $900 next year?
A) 5 percent
B) 10 percent
C) -5 percent
D) -10 percent
C
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Which statement is true?
A. The entire expansion from the trough to the peak is the recovery phase. B. The entire contraction from the peak to the trough is the recession phase. C. Recessions never last more than one year. D. Prosperity is the first phase of expansion.
Answer the following statements true (T) or false (F)
1. The GDP counts durable goods only during their year of production. 2. In national income accounting, machine depreciation is treated as a cost of production, but damage to a region’s air quality is not. 3. The GDP is reported on a monthly basis by the Department of Commerce. 4. An increase in the price level adds to the value of the nominal GDP but not to the real GDP. 5. An increase in business inventories would be included in the investment component of GDP. 6. GDP overstates national income because it does not make any adjustment for national debt. 7. Most national wealth in the United States is held in the private sector.
Which of the following is a drawback of command-and-control regulation?
a. Applying the same standard to all firms b. Being enforced by industry executives c. Providing too much flexibility d. Relying too heavily on market tools
Why might it be a good economic decision for a person such as Oprah Winfrey or Mark Zuckerberg to drop out of college? Give an economic justification for such a decision
Please provide the best answer for the statement.