Explain the typical relationship between the interest rates paid on bonds and loans and the riskiness, liquidity, and term to maturity of the bonds and loans
What will be an ideal response?
Typically for bonds and loans, the riskier they are, the less liquid they are, and the longer the maturity, the higher the interest rate. Those with less risk, more liquidity, or shorter term to maturity tend to have lower interest rates.
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Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. She submits articles for the local paper on occasion, and gets paid only when the editor agrees to publish a submission. Sasha would love to be a full-time reporter. The best way to describe Sasha is to say she is ________________; the Bureau of Labor Statistics would count Sasha as ____________.
A. underemployed; employed B. employed; employed C. discouraged; underemployed D. underemployed; underemployed
Which of the following is most likely to increase the incentive to invest, produce, and employ others?
What will be an ideal response?
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. Marginal cost will be at a minimum for this firm when it is hiring:
A. Q 3 workers.
B. Q 2 workers.
C. Q 1 workers.
D. more than Q 3 workers.
The U.S. government budget was
A) continuously in surplus from 1959 to the late 1990s. B) in surplus for most of the period from 1959-1970, but was in deficit for most of the period from 1970 to the late 1990s. C) in deficit for most of the period from 1959-1970, but was in surplus for most of the period from 1970 to the late 1990s. D) continuously in deficit from 1959 to the late 1990s.