Short-term bonds are generally
a. less risky than long-term bonds and so they feature higher interest rates.
b. less risky than long-term bonds and so they feature lower interest rates.
c. more risky than long-term bonds and so they feature higher interest rates.
d. more risky than long-term bonds and so they feature lower interest rates.
b
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Which of the following will be included in the calculation of gross domestic product using the expenditure method?
A) Wages paid to labor by firms B) Interest paid by households for loans C) Services purchased by the government D) Dividends paid by firms to shareholders
A centrally planned economy has a planning authority that decides
A) how the products are produced. B) who receives the products. C) what products to produce. D) all of the above.
If a good has an elastic demand, then:
A. a small percentage change in price will cause virtually no change in quantity demanded. B. any percentage change in price will cause an almost immediate response in quantity demanded. C. a large percentage change in price will cause a smaller change in quantity demanded. D. a small percentage change in price will cause a larger percentage change in quantity demanded.
Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?
A) inflation B) discouraged workers C) people employed in the underground economy D) unemployed persons falsely report themselves to be actively looking for a job