Generally with bond ratings, the lower the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
Answer: A
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Which of the following is the largest union in the United States?
A) International Brotherhood of Teamsters B) International Brotherhood of Electrical Workers C) National Education Association D) American Federation of State, County, and Municipal Employees
When using the economic efficiency approach to controlling air and water pollution, the government
a. forces each firm to produce emissions in the most cost efficient manner irrespective of its cost structure b. offers each firm the flexibility to reduce emissions in the most cost effective manner, given its unique cost structure c. offers each firm the option of choosing between the cost minimizing emission level and the profit maximizing emission level d. provides each firm with some fixed rules and then requires them to maximize profits given these fixed rules e. offers each firm the option of using marginal cost pricing and average cost pricing when determining the optimum emissions levels
Total profit is always maximized when __________ equals ____________.
Fill in the blank(s) with the appropriate word(s).
Pappy's Popcorn Emporium operates in a perfectly competitive industry and hires you as an economic consultant. Pappy's is currently producing at a point where market price equals its marginal cost. Its market price is greater than its average variable cost but less than its average total cost. You advise Pappy's to
A. lower its price so that it can sell more units of output. B. produce in the short run to minimize its loss, but exit the industry in the long run. C. raise its price until it breaks even. D. cease production immediately because it is not covering its operating costs.