Concerns about the bankruptcy of an appliance manufacturer diminish after a new CEO is appointed and some of the company's less productive factories are sold. What type of risk for bondholders falls? What happens to the interest rate on this company's bonds?

Emily is a writer. She buys pens and paper for $20 and writes a 500-page novel that she sells to a publishing company for $500,000. If the publisher prints 1 million copies that sell for $25 each, what is the contribution to GDP of Emily's novel?

A) $25 million B) $20 million C) $500,000 D) $50,000

Use the above table. What will the output level be when external costs are internalized with a tax?

A) 4 B) 5 C) 6 D) 7