A one-year discount bond with a par value of $1000 sold today, at issuance, for $943 has a yield to maturity of
A) 4.30%.
B) 5.70%.
C) 6.04%.
D) 9.43%.
C
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In a market where there are external or spillover costs associated with consumption and production, the equilibrium will not be efficient because:
A. price will be greater than MC. B. firms will shut down until costs are reduced. C. too many resources will be allocated to production of the good. D. costs of production will, on average, be too high.
Policies taken to move the economy closer to potential output:
A. must be expansionary policies. B. must be contractionary policies. C. are called stabilization policies. D. are lagging policies or automatic policies.
Insurance tends to drive up health care costs by encouraging greater use of health care resources. Why has this occurred in the United States but not in Canada or the United Kingdom?
A. There is no health care insurance in Canada or the United Kingdom. B. Canada and the United Kingdom use nonprice rationing to contain costs. C. Canada and the United Kingdom have better health care technology that allows them to achieve lower costs than the United States. D. Only private insurance creates an incentive to overuse health care resources.
The current account on a nation's balance of payments statement includes all of the following except:
A. The nation's goods exports B. The nation's goods imports C. Net investment income D. Net purchases of assets abroad