The additional incentive that the purchaser of a Treasury security requires to buy a long-term security rather than a short-term security is called the
A) risk premium.
B) term premium.
C) tax premium.
D) market premium.
B
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Ron weighs 150 pounds. A graph relating Ron's weight on the vertical axis to Nancy's consumption of ice cream on the horizontal axis would be
a. a horizontal line at weight = 150 b. a horizontal line at weight = 0 c. a positively sloped line with decreasing slope d. a vertical line at weight = 150 e. the origin
If the money rate of interest is 15 percent and the real rate of interest is 5 percent, the inflationary premium is
a. zero. b. 5 percent. c. 10 percent. d. 15 percent.
Which of the following statements is correct regarding a firm's decision-making?
a. The decision to shut down and the decision to exit are both short-run decisions. b. The decision to shut down and the decision to exit are both long-run decisions. c. The decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision. d. The decision to exit is a short-run decision, whereas the decision to shut down is a long-run decision.
The theory of efficiency wages explains why
a. setting wages at the equilibrium level may increase unemployment. b. it may be in the best interest of firms to offer wages that are above the equilibrium level. c. the most efficient way to pay workers is to pay them according to their skills. d. it is efficient for firms to set wages at the equilibrium level.