The value of bonds outstanding
A) increases when the government runs a budget deficit and decreases when the government runs a budget surplus.
B) decreases when the government runs a budget deficit and increases when the government runs a budget surplus.
C) is independent of the government running either a budget deficit or a budget surplus.
D) changes only when the government runs a budget deficit or surplus if the federal debt is zero.
A
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Which of the following theories predicts that there can be no sustained rise in real GDP per person above the subsistence level?
i. Classical growth theory ii. New growth theory A) i only B) ii only C) Neither i nor ii D) Both i and ii E) None of the above because whether the rise in real GDP per person is sustained or not depends on what created the rise.
Product differentiation exists within an industry if
A) there are no substitutes for a product. B) there are close but not perfect substitutes for a product. C) the firm can sell all it wants at the chosen price. D) there is a monopoly.
A clause in a mortgage loan contract requiring the borrower to purchase homeowner's insurance is an example of a
A) proscriptive covenant. B) prescriptive covenant. C) restrictive covenant. D) constraint-imposed covenant.
A major difference between monopoly and monopolistic competition is
A. The number of firms in the market. B. One has a downward-sloping demand curve, and the other does not. C. One maximizes profits by setting MR equal to MC, and the other does not. D. One type of firm has market power, and the other does not.