If a one-year zero-coupon bond has a face value of $100, is purchased for $94, and is held to maturity the:
A. holding period return will exceed the yield to maturity.
B. yield to maturity will exceed the holding period return.
C. holding period return is 6.0%.
D. yield to maturity will be 6.38%.
Answer: D
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Many nations are consistently accused of enjoying the benefits of membership in the United Nations, yet they provide few or no funds to support the organization. This is an example of
A) the principle of rival consumption. B) the free-rider problem. C) the negative externality problem. D) the property rights problem.
The concept of scarcity as used by economists refers to:
a. a situation of excess supply. b. a situation in which the available resources are not enough to satisfy the wants of the people at a zero price. c. a situation in which an item is available only in very small quantities. d. a situation in which an item is very expensive. e. a situation in which a resource is nonrenewable.