The price of a bond with no expiration date is originally $1,000 and has a fixed annual interest payment of $150. If the price of the bond then falls by $100, what will be the interest rate yield to a new buyer of the bond?
A. 16.7%
B. 11.2%
C. 17.8%
D. 15%
Answer: A
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The price elasticity of demand measures the ________ that results from a ________
A) change in quantity demanded; change in price B) change in price; change in the quantity demanded C) percentage change in price; percentage change in the quantity demanded D) percentage change in the quantity demanded; percentage change in price E) percentage change in the quantity demanded; change in price
When does a private solution to a negative externality fail to allocate resources efficiently?
What will be an ideal response?
The so-called "rule of reason" in interpreting antitrust legislation suggests that the application of antitrust laws should be based on industry:
A. Efficiency B. Concentration ratios C. Behavior D. Structure
If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) not buy the good. B) receive the maximum consumer surplus. C) receive no benefit from the good. D) receive no consumer surplus from that unit of the good. E) suffer a deadweight loss from buying the good.