The default risk premium is measured
A) by an index published monthly by the Securities and Exchange Commission.
B) by an index published monthly by The Wall Street Journal.
C) as the difference between the yield on a non-Treasury security and the yield on a U.S. Treasury security of the same maturity.
D) as the difference between the nominal yield on the security and the real after-tax yield on the security.
C
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The figure above shows the production possibilities frontiers for the United Kingdom and France. What is the opportunity cost of one bushel of wheat in France?
A) 1/4 of a pound of fish B) 4 pounds of fish C) 1 pound of fish D) 100 pounds of fish E) 2 pounds of fish
The Department of Justice has challenged the merger of two firms, and the case has ended up in the Supreme Court. The two firms argue that they will not use their monopoly power to raise prices or to cut output. Under what judicial standard would their merger be allowed, and under what judicial standard would their merger be disallowed?