Answer the following statements true (T) or false (F)
1. To calculate the rate of return on a particular bond, multiply the coupon rate by the interest rate, then add the result to the face value of the bond.
2. Equity is the monetary value that would remain after a house is sold and any bank loans repaid.
3. Accumulating hundreds of thousands of dollars by retirement is not an achievable goal even for a well-educated person who starts saving early in life.
4. Firms make and sell an astonishing array of goods and services, and an investor can receive a return on the company’s decisions by buying stock in that company.
5. In recent years, laws have been enacted in many states to discourage citizens from voting, rather than making it easier for them to vote.
1. False
This statement is false. The bond has a coupon rate, or interest rate, which is usually semi-annual, but can be paid at different times throughout the year. This is the rate of return for the bond.
2. True
This statement is true. An owner’s equity in a house is the monetary value the owner would have after selling the house and repaying any outstanding bank loans used to buy the house.
3. False
This statement is false. Accumulating hundreds of thousands of dollars by retirement is a perfectly achievable goal for a well-educated person who starts saving early in life.
4. True
This statement is true. Firms make and sell an astonishing array of goods and services, and an investor can receive a return on the company’s decisions by buying stock in that company.
5. True
This statement is true. Countering a long trend toward making voting easier, many states have recently enacted new voting laws that critics say are barriers to voting. States have passed laws reducing early voting, restricting groups who are organizing get-out-the-vote efforts, requiring photo ID, and requiring proof of U.S. citizenship. The ACLU argues that while these laws profess to prevent voter fraud, they are in effect making it harder for individuals to cast their vote.
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The act of buying a product at a low price in one market and reselling the product at a higher price in another market is called arbitrage
Indicate whether the statement is true or false
The environmental Kuznets curve suggests that
a. the environment deteriorates with development b. the environment deteriorates up to some level of GDP then improves c. open economies have less environmental problems d. low-income countries have more environmental problems e. none of the above
Squatters were considered pioneers or land entrepreneurs by many of the people in
(a) England and the New England colonies. (b) the New England colonies and Middle Colonies. (c) the Middle Colonies and Southern Colonies. (d) all of the above.
Aiden must decide whether or not to go to law school. He knows that he can earn $50,000 per year with his bachelor's degree, but he expects to earn a minimum of $58,000 per year with the law degree. An economist would advise him to
a. take the job that just requires the bachelor's degree. b. go to law school, but only if he can finish within 3 years. c. go to law school. d. consider costs, revenues, and any nonmonetary job considerations he might have also.