When someone sells a bond at a discount, the holder of the bond earns ________ with the purchase
A) a capital gain
B) a capital loss
C) market value
D) interest
A
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Economists recognize that because people have limited resources:
A. government intervention is necessary. B. our future is bleak. C. they have to make trade-offs. D. they will never be happy.
If the income elasticity of demand is negative, this means that the good is
a. an inferior good b. sold at a lower than equilibrium price c. provided by a monopoly producer d. provided by competitive producers e. a normal good
Which of the following tools help us evaluate how taxes affect economic well-being? (i) consumer surplus (ii) producer surplus (iii) tax revenue (iv) deadweight loss
a. (i) and (ii) only b. (i), (ii), and (iii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
An increase in the money supply might indicate that the Fed had
a. purchased bonds to increase banks reserves. b. purchased bonds to decrease banks reserves. c. sold bonds to increase banks reserves. d. sold bonds to decrease banks reserves.