The coupon rate on newly issued bonds is usually ________ for bonds with favorable tax treatment, such as municipal bonds, and ________ for bonds that are very risky, such as junk bonds.
A. lower; higher
B. higher; higher
C. higher; lower
D. lower; lower
Answer: A
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Susan Sneed gave up her $55,000 job at ACC, Inc to return to college to change careers. She reduced her wardrobe to cheaper jeans and t-shirts, paid $5,000 in tuition, continued to make her family's $1,200 per month home mortgage payments, and bore the burden of a variety of inane comments about the stupidity of older students giving up good paying jobs to return to school. Which of the above
items is not needed to determine the opportunity cost of her return to college? a. her $55,000 ACC, Inc. salary b. the altered wardrobe costs c. the $5,000 tuition expense d. her family's $1,200 per month mortgage expense e. psychological stress from inane comments
Refer to Figure 18.1. With an import ban, what is the equilibrium price of gloves in Duckland?
A. $0 B. $8 C. $9 D. $12
Returns to scale refers to the change in output when
A) all inputs increase proportionately. B) labor increases holding all other inputs fixed. C) capital equipment is doubled. D) specialization improves.
Related to the Economics in Practice on p. 297: According to the Economics in Practice, in a town with multiple newspapers
A. there is virtually no possibility for firms to produce a similar product and remain in business. B. there are strong incentives for firms to produce a similar product and focus on the part of the market with the most competition. C. there are strong incentives for firms to differentiate and focus on the part of the market with less competition. D. there are virtually no incentives for firms to differentiate and focus on the part of the market with less competition.