Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends
b. both bankruptcy and higher market interest rates
c. only bankruptcy
d. lower market interest rates
e. both the firm declines to pay dividends and higher market interest rates
B
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The key distinction that separates endangered resources from sustainable resources is the nature of
A) externalities. B) transactions costs. C) property rights. D) overall consumption.
Why does a monopoly cause a deadweight loss?
A) because it does not produce some output for which demand exceeds supply B) because it increases producer surplus at the expense of consumer surplus C) because it appropriates a portion of consumer surplus for itself D) because it does not produce some output for which marginal benefit exceeds marginal cost
A monopolist's demand curve is
A) perfectly elastic. B) perfectly inelastic. C) of unit elasticity throughout. D) the industry demand curve.
Cheese is priced at $5 per pound and wine at $10 per bottle. A consumer who enjoys both cheese and wine will not be in consumer equilibrium until the marginal utility of a pound of cheese is:
a. four times that of wine. b. one-fourth that of wine. c. two times that of wine. d. one-half that of wine.