Which of the following is not true regarding bonds?
a. Bonds can be purchased from corporations as well as governments
b. Interest must be paid to bondholders before dividends are paid to stockholders.
c. Bondholders face no risk from changing market interest rates on bonds that have a fixed interest rate.
d. The capital gains on bonds are generally more limited than the capital gains on stocks.
c
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Which of the following statements best summarizes why bureaucrats tend to be budget maximizers?
a. The larger the budget, the more assured bureaucrats can be of having sufficient resources to complete a task. b. The larger the budget, the more power and prestige the bureaucrat wields. c. The larger the budget, the larger the workload of the bureaucrat. d. The larger the budget, the more work in the public interest the bureaucrat can undertake.
Explain the difference between the per se and "rule of reason" standards of the antitrust laws
Which of the following is NOT an assumption of monopolistic competition?
a. Each firm's output is slightly different from other firms in the industry. b. There are many firms in the industry. c. Production occurs with increasing returns to scale technology. d. Each firm faces a perfectly elastic demand curve.