The risk spread is:
A. assigned by a bond-rating agency.
B. less than 0 (zero) for a U.S. Treasury bond.
C. the difference between the bond's yield and the yield on a U.S. Treasury bond of the same maturity.
D. the difference between a bond's purchase price and selling price.
Answer: C
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By 1916, there were 340,000 corporations in the U.S. The growth in the number of corporations was partly due to
a. increasing numbers of urban dwellers. b. the development of formal markets for stocks and bonds. c. the acceptance by most states of the doctrine of limited liability. d. mass production which led to lower per-unit costs for output. e. All of the above.
If the firms in an industry represented 35%, 25%, 20%, 15%, and 5% of the market's total revenues, respectively, what would be the measure of the Herfindahl-Hirschman Index for this industry?
a. 2,500 b. 3,525 c. 7,725 d. 10,000
In the long run, a perfectly competitive firm will react to losses by: a. reducing production or shutting down. b. reducing its inputs. c. increasing its output
d. increasing the price of its product.
A sellers' supply curve represents: a. the private cost borne by the sellers. b. the subsidies received by the sellers. c. the taxes paid by the sellers
d. the social cost borne by the sellers.