If a bond sells for $2,000 and pays $200 per year in interest, the interest rate on the bond is
A) 20 percent.
B) 10 percent.
C) 5 percent.
D) 100 percent.
B
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Which of the following statements correctly differentiates between a model and a hypothesis?
A) Testing a hypothesis does not require data, whereas testing a model requires data. B) A model is a simplified representation of reality, whereas a hypothesis is a model's predictions. C) A hypothesis can be used to make predictions for the future, whereas a model can only explain the past. D) Testing a model requires data, whereas testing a hypothesis does not require data.
Refer to Table 17-2. The firm represented in the diagram
A) has market power in the output market. B) has market power in both the factor and product market. C) has market power in the factor market. D) has no market power in the factor or product market.
Indicate how changes in monetary policy are transmitted to the goods and services market? Discuss for the case of an expansion in the money supply
Which of the following statements is false?
A) The Wilshire 5000 is a stock index that consists of the stocks of about 6,500 firms. B) Instead of buying a mutual fund that consists of various stocks picked by a fund manager you can buy a mutual fund that consists of the stocks that make up a particular stock index. C) The term Sypders stands for "Standard & Poors Direct Receipts." D) When an investor buys Spyders they are said to "buy the market."