Which of the following statements is true about bonds?
A) Buyers of newly issued bonds are borrowers.
B) When the government and large corporations want to borrow money they buy bonds.
C) A bond owner must hold a bond until it matures.
D) The interest rate on a bond is inversely related to its price.
Ans: D) The interest rate on a bond is inversely related to its price.
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Country A has a more equal distribution of income than country B if
A) country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve. B) country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve. C) country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve. D) None of the above because it is impossible to compare income inequalities across countries.
Which of the following would shift a nation's production possibilities frontier inward?
A) an increase in the unemployment rate B) producing more capital equipment C) a law requiring workers to retire at age 50 D) discovering a cheap way to convert sunshine into electricity