If investors expect interest rates to fall significantly in the future, the yield curve will be inverted. This means that the yield curve has a ________ slope
A) steep upward
B) slight upward
C) flat
D) downward
D
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Fact: People use water for many different purposes, from drinking and cleaning to filling pools, balloons, and squirt guns. Economists acknowledge the multiple uses of water when they point out that
A) everybody needs water. B) water is a good with many alternative uses at the margin. C) the demand for water is completely inelastic—consumers are totally insensitive to changes in the price of water. D) nothing but water can be used to serve all the purposes water serves.
If stocks are riskier than bonds, why would a rational investor ever buy stocks?
What will be an ideal response?
Two members of the Kenyan parliament from coffee-growing areas said that no firm should have a monopoly to market Kenyan coffee. The retail coffee company Tetu Coffee has sparked a storm in the industry by promising to earn the country Sh400 (Kenyan Shilling) billion annually if given exclusive licenses to market Kenyan coffee. The members of parliament said the coffee bean farmers should be free to sell their beans to the highest bidder.If all coffee growers had to sell their produce to Tetu Coffee, this would be a(n):
A. price-discriminating monopoly. B. oligopoly. C. monopsony. D. natural monopoly.
The market system communicates changes in market conditions and elicits appropriate responses from businesses and resource suppliers through changes in prices. This is known as the:
A. Guiding function of prices B. Monetary function of prices C. Circular flow of income D. Market determination of prices