U.S. Treasury securities

A) are considered risk free because their prices never change.
B) have been defaulted on several time in U.S. history.
C) are considered default-risk-free instruments.
D) have a large default risk premium.

C

Economics

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A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for b, we can use observed values for Q and P and then set -b(P/Q) equal to the:

A. cross-price elasticity of demand. B. price elasticity of supply. C. income elasticity of demand. D. price elasticity of demand.

Economics

A _______ demand curve has a price elasticity of demand that is perfectly inelastic

a. circular b. horizontal c. rectangular hyperbola d. vertical

Economics