Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. The price of the bond
A) falls from $2,500 to $2,000.
B) does not change because it is not affected by the interest rate.
C) falls from $25,000 to $20,000.
D) rises from $2,000 to $2,500.
A
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Which of the following statements about the perfect competitor is INCORRECT?
A) The perfectly competitive firm is always a price taker. B) The perfect competitor sells a homogeneous commodity. C) If an individual firm raises price, it will lose business. D) The products made by a perfectly competitive firm have no close substitutes.
People who are not currently employed, but say they want a job, are counted as unemployed only if they:
a. have previously held a job. b. are actively seeking employment. c. are willing to accept a reasonable offer. d. are between 16 and 65 years of age. e. are willing to accept any offer of employment.