A bond purchaser bought a bond from which she receives $800 a year from the issuer. If the face value of the bond is __________ then the coupon rate is __________
A) $10,000; 10 percent
B) $8,000; 8 percent
C) $10,000; 8 percent
D) $8,000; 12 percent
E) none of the above
C
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Steel producers in the United States observe that foreign sales of U.S. steel has drastically declined due to stringent trade policies adopted by the foreign governments and unfair treatment of U.S. steel exports in foreign countries. The lobbying efforts of such loss making U.S. steel manufacturers induce the domestic government to restrict the entry of imported steel and help stimulate the
sales of domestically produced steel. Which of the following tariffs is most similar to the example mentioned above? a. A tariff imposed by the government to stimulate domestic production of a high-technology good with positive spillover effects b. A tariff imposed by the government on the import of cotton textiles because it is an infant industry in the domestic country c. An import tariff applied against a foreign monopoly supplying the domestic market d. Tariffs imposed by the government on an import competing industry that generates a negative production externality e. Reciprocal tariffs introduced by the government of a country as a call for fair trade
Information supplied to consumers by the government rarely ever helps in making better decisions
a. True b. False Indicate whether the statement is true or false
Debt service
A. Is a discretionary component of the federal budget. B. Is a redistribution, so it does not entail opportunity costs. C. Does not cost the government because it can issue new debt. D. Refers to the annual interest payments on the debt.
Sharon buys some common stock in 1990 for $10,000 and sells it in 2000 for $15,000. During the same period, prices have risen by 75 percent. The net result of Sharon’s stock purchases is that she will
A. pay no taxes because she earned negative real capital gains. B. lose purchasing power and have to pay taxes anyway. C. earn a real capital gain of $5,000 plus 75 percent. D. earn a real capital gain of $15,000 minus 75 percent.