If a corporation begins to suffer large losses, then the default risk on the corporate bond will
A) increase and the bond's return will become more uncertain, meaning the expected return on the corporate bond will fall.
B) increase and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.
C) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will fall.
D) decrease and the bond's return will become less uncertain, meaning the expected return on the corporate bond will rise.
A
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The demand curve for the product of a monopolistic competitor is
A) downward sloping. B) horizontal. C) vertical. D) unitary elastic.
The burden of the payroll tax falls entirely on the employee regardless of how it is formally divided between employer and employee if the
a. demand for labor is inelastic. b. supply of labor curve is horizontal. c. supply of labor curve is virtually vertical. d. demand for labor curve is elastic.
Brand names such as "Coca Cola" or "Nike"
a. raise the cost of goods because they require advertising to make consumers aware of the brand name and, therefore, generally increase the price of products to consumers without producing any benefit to them. b. generally convey little information about a product to consumers. c. benefit consumers by assuring them of a known quality level when they buy a product that they have little previous first-hand knowledge about. d. provide the most value to consumers for goods that are repeat-purchase items.
In the circular-flow diagram,
a. profit flows from households to firms. b. labor flows from households to firms. c. services flow from households to firms. d. All of the above are correct.