When interest rates rise, bond prices:
A. rise.
B. could either rise or fall.
C. fall.
D. do not change.
Answer: C
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The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to
A) a decrease in the supply of kayaks. B) a decrease in the quantity of kayaks supplied. C) an increase in the supply of kayaks. D) an increase in the quantity of kayaks supplied. E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.
A firm that has the long-run cost curves shown in the graph above would not be able to do which one of the following?
A. exploit economies of scale B. have an entry barrier protecting it from new entrants into the market C. serve an increasing share of the market at lower and lower unit costs D. attain lower unit costs by reducing its output level
A price floor (set above the equilibrium price) on rice will
A) force otherwise profitable farmers out of business. B) result in a shortage of rice. C) result in a surplus of rice. D) clear the market for rice. E) both a and b
If a nation can produce a more computers per year than any other nation, that nation has a(n) ________ advantage in the production of computers.
A. relative B. natural C. absolute D. comparative