Considering the value of a financial instrument, the circumstances under which the payment is to be made influence the value because:
A. payments that are made when we need them the most are more valuable.
B. we like uncertain payoffs because this adds to the return.
C. the sooner the payment is to be made the better.
D. we know when certain events are going to occur and that is when we want the payment.
Answer: A
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A public good is ________ and ________
A) rival; excludable B) nonrival; excludable C) rival; nonexcludable D) nonrival; nonexcludable
Competitive firms earn zero profit in the long run when
A) entry is completely free. B) entry is limited. C) Both A and B. D) Neither A nor B.
Which of the following is an example of a compensating differential?
a. paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal b. paying workers who work on the day shift lower wages than workers who work the night shift, all else equal c. paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal d. All of the above are examples of compensating differentials.
According to the theory of liquidity preference, an increase in the rate of growth of the money supply will cause which of the following?
a. Interest rates will fall. b. Interest rates will rise. c. Nominal wages will fall. d. Nominal GDP will stay the same. e. Real GDP will fall.