Suppose American winemakers convince the federal government to issue a directive to serve only domestically produced wine at government functions. This would be an example of:
A. moral hazard.
B. the principal-agent problem.
C. logrolling.
D. rent-seeking behavior.
Answer: D
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Suppose that savers become less willing to purchase medium-quality corporate bonds. The result will be that the prices of medium-quality corporate bonds will
A) fall relative to the price of U.S. Treasury securities, but rise relative to the price of high-quality corporate bonds. B) rise relative to the price of U.S. Treasury securities, but fall relative to the price of high-quality corporate bonds. C) rise relative to the prices of U.S. Treasury securities and high-quality corporate bonds. D) fall relative to the prices of U.S. Treasury securities and high-quality corporate bonds.
A large government budget deficit ________ government saving and ________ national saving
A) raises, raises B) raises, lowers C) lowers, raises D) lowers, lowers
According to the World Bank, low-income economies are heavily concentrated in:
a. Europe and Africa. b. Europe and Asia. c. Asia and Africa. d. Asia and Australia. e. North America and Australia.
When the risk factor associated with a stock increases, the expected rate of return increases.
Answer the following statement true (T) or false (F)