What is the yield to maturity of a perpetuity with a coupon of $40 and a price of $800?
What will be an ideal response?
The yield to maturity equals $40/$800 = 5%.
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Any change that increases the quantity of labor supplied at all wage rates will ________, assuming all else equal
A) shift the labor supply curve to the left B) cause an upward movement along the labor supply curve C) shift the labor supply curve to the right D) cause a downward movement along the labor supply curve
What incentive is created by a first-come first-serve allocation scheme?
A) To engage in rent-seeking. B) To have the most income. C) To be first. D) To be elected.
In the ________________ of externalities, the market equilibrium is ______________ efficient because it maximizes the net social benefit.
a. absence; ecologically b. presence; ecologically c. absence; economically d. presence; economically e. absence; environmentally
Tickets to the Indiana-Purdue basketball game are usually sold out in advance of game day. This suggests:
A. the price of the tickets must be very high or else people would not consider them valuable. B. the price is set below the equilibrium level. C. the Indiana basketball stadium is relatively small. D. everyone who attends the game will enjoy it.