Which of the following is true with regard to bonds?
A) As the price of a bond falls, the interest rates rises.
B) As the price of a bond rises, the interest rates rises.
C) As the price of a bond falls, the interest rates remains unchanged. D) As the price of a bond falls, the interest rates falls.
Ans: A) As the price of a bond falls, the interest rates rises.
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Suppose the current account shows debits of $5.3 billion and credits of $4.7 billion. The current account balance is ________, and the financial account balance is ________
A) +$0.6 billion; -$0.6 billion B) +$0.6 billion; +$0.6 billion C) -$0.6 billion; -$0.6 billion D) -$0.6 billion; +$0.6 billion
If the short-run price elasticity of demand for hospital care is 0.27, then the long-run price elasticity should be
a. greater than 0.27 b. greater than 1.00 c. less than 0.27 d. equal to 0.27 e. less than 0
money is valuable because it
What will be an ideal response?
In the long run, the main reason that a monopolist can earn positive economic profits while a perfectly competitive firm cannot is:
A. monopolists enjoy greater economies of scale. B. there are no barriers to entry in a perfectly competitive market. C. the monopolist faces an inelastic demand for its product. D. perfectly competitive firms face greater opportunity costs.