Though Treasury bonds may have little default risk, what type of risk exists when current interest rates are low?
A) price risk
B) refinancing risk
C) interest-rate risk
D) present value risk
C
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Refer to Figure 9.6. As a result of this policy, consumer surplus will
A) fall to $15. B) fall to $2250. C) rise to $2500. D) fall to $5000. E) rise to $5000.
If the average variable cost curve is above the marginal cost curve, then
A) marginal costs must be decreasing. B) average variable costs must be increasing. C) marginal costs can be either increasing or decreasing. D) marginal costs must be increasing.
Perfectly competitive markets are characterized by:
a. a small number of very large producers. b. very strong barriers to entry and exit. c. firms selling a homogeneous product. d. all of these.
Marginal utility is the change in:
a. total utility when an extra unit of output is produced. b. marginal utility when an extra unit of output is consumed. c. total utility when an extra unit of output is consumed. d. marginal utility when an extra unit of output is produced. e. average utility when an extra unit of output is consumed.