When the interest rate in the economy was 10%, the price of a bond with no expiration date that pays a fixed annual interest of $500 was $5,000. If the interest rate in the economy falls to 6%, the price of this bond will be about
A. $7,128.
B. $4,700.
C. $8,333.
D. $5,030.
Answer: C
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Which of the following is NOT held constant while moving along a supply curve?
A) expected future prices B) the number of sellers C) the price of the good itself D) prices of factors of production
Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?
What will be an ideal response?
The profit-maximizing output level minimizes average total cost.
Answer the following statement true (T) or false (F)
If marginal utility is negative
A. the consumer will not consider extra units of the good even if its price is zero. B. total utility increases at a decreasing rate. C. the consumer will want to consume the unit only if it is free. D. the consumer likes the commodity, but not as much as he or she once did.