The interest rate on a bond is
A) the difference between the face value and the bond price, expressed as a percentage of the face value.
B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
C) the ratio of the face value and the bond price, expressed as a percentage.
D) the difference between the face value and the yield, expressed as a percentage of the bond price.
Answer: B) the difference between the face value and the bond price, expressed as a percentage of the bond price.
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Monopolistically competitive firms increasing their advertising will definitely achieve which of the following?
A) shift their average total cost curve up B) shift their demand curve to the right C) increase their economic profit D) shift their demand curve to the right and shift their average total cost curve up
Which of the following statements about elasticity of supply is true?
a. Elasticity of supply is always unity. b. Elasticity of supply is always zero. c. Elasticity of supply is always negative. d. Elasticity of supply is always positive.
Which of the following is not included in Nation A's financial account?
a. Foreign deposits of funds in savings accounts in Nation A. b. Purchases and sales of legal and accounting creations. c. Foreign purchases of Nation A's Treasury bills. d. All the above.
"As soon as a mayor announced his/her 'get tough on crime' policy on New Year's day, criminals got scared and the crime rate went down." Suppose that the lower crime rate was actually caused by freezing cold temperatures in January?it was just too cold for anybody to be out robbing other people. Which fundamental hazard of the economic way of thinking did the mayor make?
A. believing that what's good for one person is good for the whole group (the fallacy of composition) B. failing to take into account the benefits of crime (the payoff fallacy) C. believing that association is the same as causation D. failing to understand the difference between positive and normative economics.