If you initially pay $1,000 for a bond with an annual interest rate of 6 percent, but then the market interest rate falls to 4 percent
A. the market price of the bond is still $1,000.
B. the market price of the bond has decreased.
C. the bond's annual interest payment falls to $40.
D. the market price of the bond has increased.
Answer: D
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How is the marginal product of labor calculated? As the firm increases its output, what pattern will we observe in the marginal product of labor and why does it occur?
What will be an ideal response?
If the price of the good measured on the horizontal axis is subject to volume discounts, then:
A. the budget line will get steeper as the consumer moves along it from left to right. B. the budget line will get flatter as the consumer moves along it from left to right. C. the indifference curve will get steeper as the consumer moves along it from left to right. D. the indifference curve will get flatter as the consumer moves along it from left to right.
When an individual withdraws funds from a checking account the:
A. bank's balance sheet shrinks and so does the Fed's balance sheet. B. bank's balance sheet shrinks but the size of the Fed's balance sheet increases. C. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected. D. size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.
An increase in demand for a good will lead to a larger increase in price if the supply is relatively elastic.
Answer the following statement true (T) or false (F)