The market value of a bond is __________ related to the rate of interest
a. directly
b. inversely
c. exactly
d. sometimes
e. never
B
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A shoe salesman working on commission must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20% to 70% but the effort would cost him $5 . If the typical commission on a pair of shoes was $8, would he decide to work hard?
a. Yes because it is higher than what it costs him in effort b. Yes because it is higher than zero c. No, because it costs him more in effort d. None of the above
Classical economists believe that:
A. velocity is not constant. B. changes in the money supply affect real GDP. C. the quantity of money explains prices. D. the money supply affects velocity.
List four protectionist policies.
What will be an ideal response?
An increase in supply of a product results when:
A. taxes on the product are increased. B. the companies that produce the product have higher materials costs. C. technological innovations are introduced in the manufacturing process. D. the government reduces subsidies on the product.