Concerns about the bankruptcy of an appliance manufacturer diminish after a new CEO is appointed and some of the company's less productive factories are sold. What type of risk for bondholders falls? What happens to the interest rate on this company's bonds?
default risk, The interest rate falls.
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A firm is a monopoly if
a. it faces a demand curve for its product that equals market demand. b. it is a very large firm. c. it takes its rivals' actions into account when choosing its price and output levels. d. its production decisions do not affect the price of its product.
In a small country, the adult population equals 10,000. In that country, 8,000 people are in the labor force and 200 people are unemployed. The unemployment rate equals
A) 2.5 percent. B) 2 percent. C) 4 percent. D) an undetermined amount given the lack of information.
The Haig-Simons definition of income
A. is measured over a given time. B. measures an individual's power to consume. C. is a net change measure. D. all of these answer options are correct.
The market allocates goods to individuals according to the individuals'
a. desire for the good. b. ability to pay for the good. c. desire and ability to pay for the good. d. political influence.