If a local government eliminates the tax exemption on municipal bonds, we'd expect to see:
A. municipal bonds will become more attractive to investors.
B. an increase in the yield on taxable bonds.
C. a decrease in the gap in yields on taxable and tax-exempt bonds.
D. a decrease in the yield on municipal bonds.
Answer: C
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The price of a cowboy hat is $100. Willie is willing to pay $130, Waylon is willing to pay $100, and Merle is willing to pay $85. All of the following statements are true EXCEPT:
A) Merle's consumer surplus is $15. B) The sum of consumer surplus will be $30. C) Waylon's consumer surplus is $0. D) Only Willie and Waylon will purchase the cowboy hat. E) Willie's consumer surplus is $30.
Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are
A) both luxury goods. B) substitutes in consumption. C) both inferior goods. D) complements in consumption.
Production efficiency exists when the least cost combination of inputs is used to produce output
a. True b. False
Dividend refers to
a. a corporation's regular payments to lenders. b. part of the revenue given to stockholders of a corporation. c. a lender's legal claim on the assets of a bankrupt corporation. d. a prepayment of a corporation's legal obligation.