Regular interest payments made to bondholders are called ________ payments.
A. reserve
B. coupon
C. dividend
D. diversification
Answer: B
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Which of the following most accurately states the function of middlemen?
a. Middlemen add to the expense of buyers and sellers without providing any benefit. b. Our economy would work just as well without middlemen since they do not expand the availability of physical goods. c. Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net revenue. d. Middlemen create value by arranging trades and providing information to buyers and sellers.
People are forced to economize because of
A. competition. B. pressure to conform. C. scarcity. D. the absence of money.
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) The (U.S.) dollar appreciates, net exports rise, total expenditures on goods and services rises, AD rises, and the AD curve shifts rightward. B) The interest rate falls, investment rises, total expenditures on goods and services rises, AD falls, and the AD curve shifts leftward. C) Wealth increases, consumption rises, total expenditures on goods and services rises, AD falls, and the AD curve shifts rightward. D) (Business) expectations about future sales become more positive, investment rises, total expenditures on goods and services rises, AD rises, and the AD curve shifts rightward. E) Foreign real national income rises, net exports rise, total expenditures on goods and services falls, AD rises, and the AD curve shifts rightward.
Daily Steel produces bars that cost $4 to make, and it receives $7 for them. The difference between these two prices is known as ______.
a. consumer surplus b. producer surplus c. deadweight loss d. price control