A corporate bond sold in 2000 with a face value of $10,000, a $100 coupon, and a maturity date in 2010
A. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $9,000 in 2010.
B. will pay the bondholder $100 a year every year from 2000 to 2010 and will also pay the bondholder $10,000 in 2010.
C. requires the bondholder to pay $100 a year every year from 2000 to 2010 and will pay the bondholder $10,000 in 2010.
D. requires the bondholder to pay $100 in 2000 only and will pay the bondholder $10,000 in 2010.
Answer: B
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When all other influences on firms' hiring plans remain the same, the
A) lower the real wage rate, the greater is the quantity of labor supplied B) higher the real wage rate, the greater is the quantity of labor demanded. C) lower the real wage rate, the smaller is the quantity of labor demanded. D) lower the real wage rate, the greater is the quantity of labor demanded. E) None of the above answers is correct because firms' hiring decisions depend on how profitable hiring a worker is, which depends on how much added profit the worker can create.
Jake just quit his job as a shoe salesman and is looking for work as an accountant, which is what his college degree is in. Jake would be considered:
A. frictionally unemployed. B. structurally unemployed C. cyclically unemployed. D. Jake is not in the labor force.
The local baseball team owner hires you to help maximize the team's profits. Assume your task is to maximize revenues from ticket sales. Your advice to the owner should be to
A. Set the ticket price in the inelastic region of the demand curve in order to increase revenues. B. Set the price of tickets at the unitary elasticity price. C. Set the price as low as possible to make sure the stadium is always full. D. Raise the price as high as possible until the number of tickets sold begins to fall.
Suppose that a government agency is trying to decide between two pollution reduction policy options. Under the permit option, 100 pollution permits would be sold, each allowing emission of one unit of pollution. Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit. Under the pollution tax option, firms would be taxed $250 for each unit of pollution emitted. The regulated firms all currently pollute and face varying costs of pollution reduction, though all face increasing marginal costs of pollution reduction. Suppose the permit policy is adopted. A firm will wish to purchase its first permit if the price of that permit is less than or equal to:
A. the average cost of eliminating one unit of pollution. B. the reduction in costs associated with increasing its emissions from zero to one unit. C. the increase in costs associated with reducing its existing emissions by one unit. D. the lowest cost of eliminating one unit of pollution.