The additional interest that investors require to buy a long-term bond instead of a sequence of short-term bonds is known as the:
A) risk premium
B) default premium
C) term premium
D) segmented premium
C
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Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for
employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal A) (20/80 ) × 100. B) (20/60 ) × 100. C) (30/80 ) × 100. D) (20/100 ) × 100.
If we consider the reality that each worker has different skills, then the production possibilities frontier
A. would display a constant opportunity cost of a good as more of that good is produced. B. would display a decreasing opportunity cost of a good as more of that good is produced. C. would display an increasing opportunity cost of a good as more of that good is produced. D. cannot be drawn, as too many variables would need to be taken into consideration.
In the______________, workers cannot work efficiently because there are too many resources per worker.
Fill in the blank(s) with the appropriate word(s).
David has decided not to purchase another can of Stosh because his friends laughed at him the last time he purchased some. Stosh is no longer a popular item. David's decision is known as
A. positive market feedback. B. negative market feedback. C. price-leadership. D. negative-sum game.