Which of the following statements about junk (high-risk) bonds is true?
A) They never outperform treasury bonds since they're too risky.
B) The price of junk bonds increase as their perceived risk increases.
C) They tend to perform best during recessions.
D) One can profit by owning them if market perceptions of their risk decline.
D
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On Thanksgiving, Jake's mother gives him a huge platter of food. If Jake were to keep eating just to please his mother (even when he really wanted to stop), his marginal utility would be:
a. the same as his total utility. b. large. c. minus one. d. positive. e. negative.
"Plowback" is a preferred source of financing a corporation because
a. it is fairly easy, compared to issuing stocks. b. it is not subject to double taxation. c. selling bonds involves the high cost of money. d. stock markets are subject to random walks.
The actual benefit of a government subsidy is determined primarily by
a. the elasticities of demand and supply. b. the legal (or statutory) assignment of the subsidy c. the number of exchanges that are made possible as a result of the subsidy. d. whether the subsidy is paid by cash or check.
Explain two different ways to determine the profit-maximizing level of output for a firm in a perfectly competitive market
What will be an ideal response?