Bonds with ________ tend to have higher interest rates than bonds with ________
A) high liquidity; low liquidity
B) high default risk; low default risk
C) shorter maturity; longer maturity
D) low tax burdens on their interest; high tax burdens on their interest
B
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Between 2001 and 2015, equilibrium college tuition rose from $15,000 to $27,000 and equilibrium enrollment increased from 16 million to 21 million students. These changes could be the result of
A) an increase in demand. B) an increase in supply. C) a decrease in demand. D) a decrease in supply.
Consumer’s surplus
A. is the gap between total willingness to pay and the total market value of a good. B. guarantees that the market value of a good in money is equal to the total economic value of the good. C. is always negative because of diminishing marginal utility. D. is the total area under a consumer’s demand curve.
Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?
A) The price would increase, the demand would increase, and the supply would decrease. B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase. C) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease. D) The price would increase, quantity demanded would increase, and quantity supplied would decrease.
In a sealed-bid Vickrey auction, the person who bids the:
A. highest gets the object of the bid at the price he or she bid. B. second highest bidder has the option to receive the good if he or she pays the price of the highest bidder. C. highest bidder gets the object but pays the price bid by the second highest bidder. D. second highest bidder gets the good and pays that price.