U.S. government bonds have no default risk because
A) they are issued in strictly limited quantities.
B) the federal government can increase taxes or print money to pay its obligations.
C) they are backed with gold reserves.
D) they can be exchanged for silver at any time.
B
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When product A is a substitute for product B, the cross-price elasticity of demand for products A and B will be _____
a. unity b. negative c. positive d. decreasing e. increasing
More than 70 percent of national income is attributed to
a. compensation of employees b. rental income c. corporate profit d. net interest e. proprietors' income
If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will increase. B. the demand for tires will decrease. C. the supply of tires will decrease. D. the demand for tires will increase.
Anthony and Kelly decide to watch a movie on Netflix using a promotion code so they do not need to pay for that movie. We know that
A. neither bears an opportunity cost since neither needs to pay for the movie. B. both bear an opportunity cost that depends on what each person is giving up to watch the movie. C. both bear the same opportunity cost because they are seeing the same thing. D. both bear the same opportunity cost because the tickets have the same face value.