Jessica paid $7,000 for a bond with a face value of $6,000. She will be paid $400 annually as long as she holds on to the bond, until the bond's maturity date. The yield on the bond is
A) 6.67 percent.
B) 5.71 percent.
C) 15.0 percent.
D) 80.0 percent.
A
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Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Quantity producedPrices 2005200620052006Hamburgers2,0003,0002$3Hotdogs3,0004,0001$1.50Given the data in the table above, what is the value of nominal GDP in 2006?
A. $15,000 B. $10,500 C. $ 5,000 D. $ 7,000
In a natural monopoly, the long-run average cost curve declines and therefore average cost is lower when there is only one seller
a. True b. False Indicate whether the statement is true or false
Insurance companies charge annual premiums to collect revenue, which they then use to pay customers who file claims for damages they incur. As a result of the moral hazard problem (1) what is the effect on the percentage of policy holders making claims, and (2) what is the effect on the average premium charged when compared to a world with no moral hazard problem?
a. The percentage of policy holders making claims is higher; average annual premiums are lower. b. The percentage of policy holders making claims is lower; average annual premiums are lower. c. The percentage of policy holders making claims is higher; average annual premiums are higher. d. The percentage of policy holders making claims is lower; average annual premiums are higher.
After 2012 when the U.S. economy recovered,
a. the budget deficits shrank, and the increases in the debt-to-GDP ratio became larger. b. the budget deficits grew, and the decreases in the debt-to-GDP ratio became larger. c. the budget deficit shrank, and the increases in the debt-to-GDP ratio became smaller. d. the budget deficits grew, and the decreases in the debt-to-GDP ratio became smaller.