The law of demand indicates that:
a. every physical good has a use.
b. when people want a good badly enough, they will find a way to pay for it.
c. the desire for a good is unrelated to its price.
d. the quantity of a good that people will buy is inversely related to the price of the good.
d
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Which of the following $5,000 face-value securities has the highest yield to maturity?
A) a 6 percent coupon bond selling for $5,000 B) a 6 percent coupon bond selling for $5,500 C) a 10 percent coupon bond selling for $5,000 D) a 12 percent coupon bond selling for $4,500
Marginal, average, and total figures are unrelated.
Answer the following statement true (T) or false (F)
The Consumer Price Index compares the
a. prices of all goods and services in the economy compared to the prices of those goods and services in a base year. b. prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. c. prices of producer goods and services that are made for consumers to the prices of those goods and services in a base year. d. prices of goods and services that are purchased by producers to the prices of those goods and services in a base year. e. prices of goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.
Labor costs usually increase at an increasing rate at high levels of output for all of the following reasons except
a. labor productivity begins to decline b. the marginal gains from specialization decrease c. the price of labor rises as more workers are hired d. the workers hired later may not be as qualified e. fuel costs begin to increase as more output is produced