A bond's price is sensitive to changes in
a. the interest rate.
b. the accepted rate of return on investment.
c. investor confidence in the stability and credit worthiness of the firm.
d. All of the above are correct.
d
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A payment the government makes to either the buyer or seller, usually on a per-unit basis, when a good or service is purchased or sold is called a
a. black market. b. interest rate. c. subsidy. d. tax.
A nearly vertical aggregate supply curve occurs
A. when the economy is producing close to the maximum output level. B. whenever an economy is in a recession. C. in an economy with considerable cyclical unemployment. D. in an economy with much idle capacity.
Assume an economy experiences, for a given period, a 5% increase in output and a 1% increase in productivity. Given this information, we know that which of the following occurred for this economy during this period?
A) The unemployment rate increased during this period. B) The unemployment rate decreased during this period. C) The unemployment rate did not change during this period. D) The effects on the unemployment rate are ambiguous. E) none of the above
Voluntary exchange
A) is the only way to eliminate scarcity. B) is a nonprice rationing device. C) is trading so that the consumer and producers are better off. D) involves no transactions costs.