The idea that investors today compare the returns on bonds with differing times to maturity to see which is expected to give them the highest return is the underlying principle behind the ________ of the term structure of interest rates
A) expectations theory
B) investors' viewpoint analysis
C) segmented-markets theory
D) yield comparison theory
A
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Which of the following situations best describes an individual who is cyclically unemployed?
A) Catherine is a ski instructor who is not working because it is summer. B) Matthew was an artillery man, but he has been unable to find work since he left the army. C) Nicholas was laid-off when orders for General Motors cars fell during a recession. D) Susan quit her job as a preschool teacher to try to find a better paying job.
Because we face scarcity, every choice involves
A) money. B) the question "what." C) giving up something for nothing. D) an opportunity cost.
_____ is the understanding that perfect information is not likely to be available, and that as a result, people make decisions that in hindsight look irrational, but in reality are the rational results of a brain that is economizing
a. Reasoning b. Parametric determinism c. Rational ignorance d. Bounded rationality e. Dynamic inconsistency
A new fertilizer which greatly improves the corn crop yield is being widely used by corn farmers. You accurately predict that this
A. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the demand for corn will fall. B. will shift the supply curve of corn to the left, the equilibrium price of corn will increase, and the quantity demanded of corn will decrease. C. will shift the supply curve of corn to the right, the equilibrium price of corn will increase, and the demand for corn will fall. D. will shift the supply curve of corn to the right, the equilibrium price of corn will decrease, and the quantity demanded of corn will increase.