If a one-year bond currently yields 5% and is expected to yield 7% next year, the liquidity premium theory predicts that the yield today on a two-year bond should be
A) 5%.
B) less than 6%, but more than 5%.
C) 6%.
D) more than 6%.
D
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Refer to Figure 15-11. Following the entry of Verizon, the subscription price falls from PM to PC. What is the increase in consumer surplus as a result of this change?
A) the area D + F B) the area B + C C) the area A + B + C D) the area B + C + D
Since 1980, union membership in the United States has
a. grown rapidly b. grown slowly c. declined rapidly d. declined slowly e. stayed the same
When competition is present and property rights protected and enforced, market prices will
a. discourage profit-seeking business firms from producing efficiently. b. direct entrepreneurs toward production of goods that are inferior in quality. c. encourage self-interested individuals to develop skills that are expected to be valuable in the future. d. always decrease.
Table 6.4: Population and Employment in Nationland 199920002001Working Age Population100110125Employed657080Unemployed51020Discouraged Workers235*all numbers are in millionsWhat was the unemployment rate in Nationland in 1999?
A. 65.0 percent. B. 5.0 percent. C. 7.6 percent. D. 7.1 percent.