When an investor buys a corporate bond,
A) the investor becomes part owner of the corporation.
B) the principal of the bond is a loan to the corporation.
C) the interest made on the bond represents the bondholders limited liability in the
company.
D) the face value of the bond is equal to what the investor paid for the bond.
Figure 11-15
Suppose Hilda hires labor at $8 per hour and capital costs $10 per unit. What is the
minimum cost of producing 200 gooseberry pies?
A) $3,600
B) $1,120
C) $592
D) $560
Consider the following pairs of items:
a. shampoo and conditioner
b. iPhones and earbuds
c. a laptop computer and a desktop computer
d. beef and pork
e. air-travel and weed killer Which of the pairs listed will have a negative cross-price
elasticity?
A) a and b only
B) c and d only
C) e only
D) a, b, and c only
Holding everything else constant, an increase in the price of raisins will result in
A) an decrease in the quantity of raisins demanded.
B) an increase in the demand for raisins.
C) a decrease in the supply of raisins.
D) an increase in the quantity of raisins demanded.
Government intervention in agricultural markets in the U.S. began in the
A) 1920s.
B) 1930s.
C) 1950s.
D) 1970s.
In economics, tangible merchandise is referred to as
A) invention.
B) human capital.
C) services.
D) goods.
The machines workers have to work with are considered
A) human capital.
B) physical capital.
C) entrepreneurship.
D) financial capital.
Figure 2-1
Point A is
A) technically efficient.
B) unattainable with current resources.
C) inefficient in that not all resources are being used.
D) the equilibrium output combination.
A table that shows the possible payoffs each firm earns from every combination of
strategies by all firms is called
A) an earnings table.
B) a payoff table.
C) a payoff matrix.
D) a strategic matrix.
Table 2-11
Table 2-11 shows the number of labor hours required to produce a digital camera and a
pound of wheat in China and South Korea.
What is Chinas opportunity cost of producing one digital camera?
A) 0.04 pounds of wheat
B) 4 pounds of wheat
C) 25 pounds of wheat
D) 40 pounds of wheat
In order to avoid the imposition of other types of trade barriers, foreign producers will
sometimes agree to voluntary export restraints. With voluntary export restraints, foreign
producers
A) agree to meet specific quality standards required by the importing country.
B) limit their exports to a country.
C) pay a tax on all products they export.
D) must agree to import an equal quantity of products that they export.
Table 16-3
Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the
demand for this service. Assume that each person surveyed demands only one hour of
pet sitting services per period. Table 16-3 above shows a portion of her survey results.
If Julie charges $10 per hour, what is the value of the consumer surplus received by
Dawn?
A) $2
B) $10
C) $12
D) $22
Increases in real GDP since 1900 can actually underestimate growth in the standard of
living for Americans since 1900 because
A) the level of pollution in 1900 was much higher than it is today.
B) the crime rate was higher in 1900 than it is today.
C) goods and services are more expensive today as compared to 1900.
D) the quality of health care that exists today was not available in 1900.