The change in people's purchasing power that occurs when the price of a good they purchase changes, assuming all else is held constant is known as
A) the substitution effect.
B) the real income effect.
C) the elasticity effect.
D) the multiplier effect.
Answer: B
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Sydney purchases a newly issued, two-year government bond with a principal amount of $10,000 and a coupon rate of 6% paid annually. One year before the bonds matures (and after receiving the coupon payment for the first year), Sydney sells the bond in the bond market. What price (rounded to the nearest dollar) will Sydney receive for his bond if newly issued one-year government bonds are paying a 5% coupon rate?
A. $10,600 B. $10,000 C. $9,906 D. $10,095
Use the following diagram to answer the next question. 
The diagram illustrates the pattern of
A. wage movements over time. B. business cycles. C. price level movements. D. economic growth patterns.
A natural monopoly usually arises when
A) there are diseconomies of scale in an industry. B) the government allows unrestricted access to a market. C) there are large economies of scale relative to the industry's demand. D) companies band together to form a larger company.
The fishing and whaling occupations in the early colonies:
a. never amounted to a significant economic force. b. were a major influence in the early colonial economy. c. started only in the eighteenth century. d. were mixed in their economic impact, with fishing being the least important and whaling being most important.