Bonds are a __________ liquid asset than other loans because they _____________.
A. more; are standardized
B. more; are guaranteed from default by the government
C. less; are standardized
D. less; are guaranteed from default by the government
A. more; are standardized
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Alice has $10 to spend on wine and cheese. If wine is $2.50 a glass and cheese $2, draw the corresponding budget line. Then draw three indifference curves, one showing the amount of wine and cheese Alice would choose, one showing less preferred combinations of wine and cheese, and the last showing preferred but unaffordable combinations. ?
What will be an ideal response?
Discontinuing a Missile Program Merowak Missiles has developed its Democratizer Offensive Weapon System (DOWS) for the US military. After sinking $1 billion into R&D and design, it spent $0.5 billion building the tools and production facility that are
unique to DOWS production. It houses these in standard factory floor space that costs $1 million. Each missile has a marginal cost of $2,000 . The Pentagon is thinking of discontinuing the program because the missiles are too expensive. If Merowak were to get an order for 50,000 missiles, what would its breakeven price be?
One cost associated with taxes is the: A redistribution of surplus.
A. redistribution of surplus. B. resulting under consumption. C. administrative burden. D. change in relative values.
Why are high-power couples (i.e., both people have at least a college degree) more likely to migrate to large urban areas compared to low-power couples (i.e., neither person has a college degree)?
A. Urban areas offer more college opportunities and at a lower price than typical rural areas. B. High-power couples are not very willing to move after college. C. Urban areas offer a greater array of job opportunities and wages for educated people compared to rural areas and, therefore, living in an urban area reduces the likelihood of someone in a high-power couple being a tied-mover or tied-stayer. D. Low-power couples cannot afford the costs associated with moving to an urban area. E. There are very few low-skill jobs in urban areas.