What is the difference between an inflation-indexed Treasury bond, and a Treasury bond that is not indexed?
A. An inflation-indexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not.
B. A nonindexed Treasury bond guarantees a certain real rate of return, while a nonindexed Treasury bond does not.
C. An inflation-indexed Treasury bond can only be purchased directly from the Federal Reserve, while a nonindexed Treasury can be purchased through a broker.
D. An inflation-indexed Treasury bond always guarantees the purchaser a 5 percent rate of return, while a nonindexed Treasury bond does not.
Answer: A
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A monopolist sells a homogeneous good in several distinct submarkets, and the elasticities of demand differ in these submarkets
If the monopolist selects the rate of output to sell in each submarket by equating marginal revenue and marginal cost, then A) all customers in all markets end up paying the same price. B) it is not price discriminating, but merely price differentiating. C) customers in markets with more elastic demand will pay higher prices than customers in markets with less elastic demand. D) customers in markets with more elastic demand will pay lower prices than customers in markets with less elastic demand.
Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm perceives its:
A. demand curve as being of unit elasticity throughout. B. supply curve as kinked, being steeper below the going price than above. C. demand curve as kinked, being steeper below the going price than above. D. demand curve as kinked, being steeper above the going price than below.
If the NAIRU was 4.8% in 2002 and the actual unemployment rate was 5.8%, what percentage of the labor force could have been put to work without exerting upward pressure on inflation?
A. 1% B. 5.3% C. 1.2% D. 10.6%
If a teacher tells a student that those who attend the study session typically score higher on the final exam
A. the student has a negative incentive to attend the study session because she will be punished if she does not go. B. the student has a positive incentive to attend the study session because she may get a higher grade. C. a "C" student will be making an irrational decision if she decides to skip the study session since she has plenty of time to go. D. the student has no greater incentive to attend because there is no guarantee she will get a higher grade on the exam.