When a person buys a bond of the XYZ Corporation, he or she can expect to
A) pay the corporation a certain amount of money each quarter of the year.
B) receive the face value of the bond each year and the face value of the bond when the bond matures.
C) receive the coupon rate times the face value of the bond each year and the face value of the bond when the bond matures.
D) receive the face value of the bond each year in perpetuity.
C
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Which of the following are correct statements about implicit and explicit costs?
i. Normal profit is an implicit cost. ii. Economic depreciation is an explicit cost. iii. Wages are an explicit cost. A) ii and iii B) i and iii C) iii only D) i, ii, and iii E) i only
Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.
If the MRP of the 13th worker hired is $40 and the MLC of that worker is $34, the firm
a. lost money by hiring that worker b. cannot hire that worker unless more capital is added to production, in which case the firm will profit if the cost of the worker and capital is less than the revenue theworker generates c. profited only if price of the good increased d. must have lost money on the 12 workers it hired prior to hiring this 13th worker e. profited by hiring that worker
Goods produced for consumption in 2003 but remain unsold in 2003 become
a. intended inventories b. unwanted inventories c. aggregate expenditure d. transitory investment e. intended investment