The price of a bond and the interest rate
A) are positively related.
B) are inversely related
C) are directly related.
D) are linked by the capital asset pricing model.
B
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The inefficiency of a sales tax on a good is ultimately the result of the
A) low tax revenue earned by the government relative to the cost of collection. B) wedge between what buyers pay for the good and what sellers receive for the good. C) buyers being unable to avoid paying the tax. D) sellers being unable to avoid paying the tax. E) increase in the consumer surplus that is more than offset by the decrease in the producer surplus.
The central macroeconomic concept that is most clearly related to changes in the well-being of the average member of the economy is the
A) unemployment rate. B) inflation rate. C) productivity growth rate. D) None of the above is closely related.
A counterparty to a financial instrument is always the:
A. person or institution that purchases the financial instrument. B. person or institution that is on the other side of the financial contract. C. government agency guaranteeing the value of the instrument. D. issuer of the financial instrument.
Why does a patent stimulate research?
A) Patents give firms time to do research. B) Patents give firms the opportunity to recover research costs and thus serve as a profit motive. C) Without patents, firms would not research as much. D) They don't.