A newly issued bond with a face value of $8,000 and no coupon payments is priced at $7,000 . The bond will mature in one year. What is the yield on this bond?
a. $1,000
b. 12.5 percent
c. 14.3 percent
d. $272.73
e. It depends on the interest rate
C
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In the short-run, firms in a monopolistically competitive market will earn zero economic profit
a. True b. False
A Giffen good is a good for which an increase in the price
a. decreases the quantity supplied. b. increases the quantity supplied. c. decreases the quantity demanded. d. increases the quantity demanded.
A possible rational reason why older people, on average, show less interest in learning how to use new technologies is because
A) older people are not as smart as (today's) young people. B) they are acting irrationally. C) they have fewer years to gain a return from learning how to use new technologies. D) the financial cost for older people is greater than the cost to younger people.
The government tries to protect the competitive economic system by passing and enforcing
A) price controls. B) tariff legislation. C) antitrust laws. D) building codes and zoning laws.