The demand curve is downward-sloping because of the law of

A. diminishing marginal utility.
B. diminishing consumer equilibrium.
C. consumer equilibrium.
D. diminishing utility maximization.


Answer: A

Economics

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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower

Economics

If a corporate bond with a face value of $20,000 pays yearly coupon payments of $500, what is the coupon rate?

A) 2.5% B) 4% C) 25% D) 40%

Economics

Bonds can be risky investments because

A. bondholders are paid from whatever remains after stockholders have been paid what the corporation owes them. B. if the corporation loses its assets, the bondholders may not receive payment on their investments. C. the general price level may fall. D. the voting power of an individual bondholder may be more apparent than real.

Economics

________ is the relationship according to which the perceived change in any stimulus varies according to the size of the change measured as a proportion of the original stimulus.

A. Regression to the mean B. The adaptive rationality standard C. The Weber-Fechner law D. The representative heuristic

Economics