If an investor wants to compare commercial paper to a corresponding default-free investment, which security would he/she use and why?
What will be an ideal response?
He or she should use the U.S. Treasury bill. The reason is U.S. Treasuries are the closest thing to default-free and the reason for the Treasury bill is that T-Bills, like commercial paper have very short maturities, usually less than 360 days.
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Which of the following was an element of the New Deal?
A. Wage and price controls B. Unemployment insurance and bank deposit insurance C. Regulation of the stock market D. Unemployment insurance, bank deposit insurance, and regulation of the stock market, but not wage and price controls
The natural unemployment rate is the result of
A) job search and job rationing. B) insufficient demand for labor. C) the Lucas Wedge. D) the Okun Ga
If there is a permanent decrease in demand in a perfectly competitive market, then there is an initial ________ in price and existing firms ________
A) rise; make an economic profit B) rise; incur an economic loss C) fall; make an economic profit D) fall; incur an economic loss
If all land had equal productivity, then
a. land rent would increase b. differential land rents would not exist c. location rent would not exist d. locations rent would be everywhere the same e. differential rent would increase