The risk structure of interest rates says:
A. the interest rates on a variety of bonds will move independently of each other.
B. lower rated bonds will have higher yields.
C. interest rates only compensate for risk during recessions.
D. U.S. Treasury bond yields always change by more than other bonds.
Answer: B
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Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,
A) total welfare would increase, but consumer surplus would decrease. B) total welfare and consumer surplus would increase. C) total welfare would decrease, but consumers surplus would increase. D) total welfare and consumer surplus would decrease.
The labor force consists of all adults who are currently employed
a. True b. False Indicate whether the statement is true or false
The Kahneman-Tversky value function is
A. not defined over changes in income or wealth. B. steeper in gains than in losses. C. steeper in losses than in gains. D. a symmetrical utility function for gains and losses.
The above figures show the market for hamburger meat. Which figure(s) shows the effect of an increase in the price of a hamburger bun, a complement for hamburger meat?
A) Figure B B) Figure C C) Figure D D) Figures A and B