Bonds can be risky investments because
A. bondholders are paid from whatever remains after stockholders have been paid what the corporation owes them.
B. if the corporation loses its assets, the bondholders may not receive payment on their investments.
C. the general price level may fall.
D. the voting power of an individual bondholder may be more apparent than real.
Answer: B
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The percentage markups which sellers use
A) are based on their estimates or guesses about marginal cost and marginal revenue for particular goods. B) are between 10 and 15 percent. C) are the same on all products of a single firm. D) differ between products but are the same on average for all firms.
Politicians have an incentive to favor short-run policies because _____
a. because voters suffer from myopia b. of special interests c. they may be voted out of office before long-run policies bear fruit d. of rational ignorance
Capital investment becomes more profitable for a business firm as the real interest rate decreases
a. True b. False Indicate whether the statement is true or false
From 1960 to 2010, the amount of money spent on K-12 education has ________ in dollar terms, ________ in real terms, and ________ in real dollars per student terms.
A. increased; decreased; increased B. increased; increased; increased C. decreased; increased; decreased D. increased; decreased; decreased