Consider the following three bonds, Bond F, Bond J and Bond P. Bonds F and P mature
in 1 year while Bond J matures in 4 years. Bond F and J have a face value of $10,000
while Bond P has a face value of $11,000. If the interest rate is 15%, rank the three
bonds from highest present value to lowest present value.
If a professional organization imposes strict licensing procedures that increase entry
costs for new members, then labor
If Country A exports a good to Country B, who is made better off?
a. The producers in Country A and the consumers in Country B
b. The consumers in Country A and the consumers in Country B
c. The producers in Country A and the producers in Country B
d. The consumers in Country A and the producers in Country B
e. Only the consumers in Country A will benefit from this trade agreement
An increase in government purchases will increase GDP by an amount equal to the
change in government purchases times the expenditure multiplier.
Innovations that generate profit for a firm’s owners include developing
Which of the following determines how much money an individual will decide to hold?
a. Investment spending
b. Income taxes
c. The price level
d. The supply of money
e. Real GDP
When a one-percent change in price is accompanied by a larger percent change in
quantity demanded,
Net exports
a. are equal to total exports minus total imports
b. are always positive because total imports exceed total exports
c. are always negative because total exports exceed total imports
d. always exceed total exports
e. include goods produced and sold abroad
As applied to labor demand, the marginal approach to profit
The foreign exchange rate is controlled by the Federal Reserve.
The price of apples in Denver, Colorado is
In the long run,
a. the Phillips curve is upward sloping.
b. the Phillips curve is downward sloping.
c. monetary policy can influence the unemployment rate.
d. monetary policy cannot influence the unemployment rate.
e. the Phillips curve is horizontal.
The key difference between the primary and secondary bond markets is that
__________ bonds are traded on the primary market, while __________ bonds are
traded on the secondary market.
If a market has more than one seller, but fewer sellers than under perfect competition, it
is referred to as
A low-productivity country will tend to avoid free trade with a high-productivity
country. The low-productivity country will be exploited and lose industries in which it
has a comparative advantage.
If the Fed wants to lower the interest rate, it will
a. buy bonds and decrease the money supply.
b. buy bonds and increase the money supply.
c. sell bonds and decrease the money supply.
d. sell bonds and increase the money supply.
e. sell bonds and decrease money demand.