If you own a bond with a seven percent coupon rate and new bonds are paying five percent, what will happen to your bond's market price?
What will be an ideal response?
It will go up.
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Discuss how tax burdens are related to the elasticity of labor.What do most economists believe is true about the elasticity of labor supply in the United States and the burden if any that workers bear?
What will be an ideal response?
The above figure shows the short-run production function for Albert's Pretzels. The average product of labor
A) increases first and then decreases. B) decreases first and then increases. C) decreases throughout. D) increases throughout.
Risk pooling occurs when:
A. people organize themselves in a group to collectively absorb the cost of the risk faced by each individual. B. people organize themselves in groups according to how risk-averse they are. C. people organize themselves in groups according to recognizable characteristics. D. companies organize individuals into groups according to how risk-averse they are.
The production possibilities frontier will shift if there is a change in
a. technology b. unemployment c. product prices d. society's preferences for commodities e. the quantities of the two goods being produced