The risk spread:
A. is always constant.
B. should have an inverse relationship with the bond's yield.
C. should have a direct relationship with the bond's price.
D. is also known as the default-risk premium.
Answer: D
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Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.
Economics is a social science that is concerned with:
of productive resources so there is a minimum level of income b. The best use of scarce resources paid for at the highest level of cost to consumers and businesses c. The best use of scarce resources to achieve the maximum satisfaction of economic wants d. Increasing the amount of productive resources so there is maximum output in society
If a country has a high level of income, it:
A. must be rapidly increasing its GDP per capita. B. must have a high level of income. C. must have an equitable distribution of wealth. D. All of these are true.
Direct controls often require long legal proceedings before they can be effective.
Answer the following statement true (T) or false (F)