Which of the following financial investments is highly liquid and has very little risk but offers a low rate of return?
a. Savings account
b. Mutual fund
c. Certificate of deposit
d. Treasury bond
a. Savings account
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Refer to Figure 11-1. The marginal product of the 7th worker is
A) 66. B) 9.43. C) 2. D) -2.
The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond, and investors have no
preference for short-term bonds relative to long-term bonds. A) segmented markets theory B) expectations theory C) liquidity premium theory D) separable markets theory
Which of the following examples would fit this graph?
a. A celebrity endorsement causes the desire for broccoli to increase as flooding destroys much of the broccoli crop.
b. A report emphasizing the health benefits of yogurt causes increased competition to buy this good as production of yogurt increases.
c. Fewer consumers buy CDS as more stream music, causing the production of CDs to drop.
d. Fewer consumers buy corn chips as more buy potato chips, but the production of corn chip remains constant.
Figure 4-19
Refer to . When the price ceiling applies in this market and the supply curve for gasoline shifts from S1 to S2, the resulting quantity of gasoline that is bought and sold is
a.
less than Q3.
b.
Q3
c.
between Q1 and Q3.
d.
at least Q1.