Suppose the price of gasoline and other petroleum products decline sharply. Which of the following will most likely occur as a result of the lower petroleum prices?
a. an increase in demand for solar heating systems
b. an increase in demand for larger, more powerful automobiles
c. an increase in demand for home insulation products
d. an increase in demand for gasoline
b
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The quantity supplied of a good is
A) the same thing as the quantity demanded at each price. B) the amount that the producers are planning to sell at a particular price during a given time period. C) equal to the difference between the quantity available and the quantity desired by all consumers and producers. D) the amount the firm would sell if it faced no resource constraints.
Speculation in the sale of public lands
(a) did not occur. (b) placed land in the hands of capitalists at a price that was not competitive. (c) proved to be a necessary evil in transferring land from public to private ownership. (d) was caused by squatters.
When the housing bubble occurred it can be attributed to all of the following except:
A. people expected housing prices to continue to rise. B. it became easier to leverage more of a home's value, putting buyers more into debt. C. the seller of the mortgage had lost incentive to properly assess the risk. D. homeowners lack of confidence in the institutions who made the loan to them.
Suppose a company's bond sold for $100 last month and this month the price is $90. The annual interest payment is $18. The current yield on this bond is
A. 20 percent. B. 10 percent. C. 18 percent. D. 1.8 percent.