When an investor buys a corporate bond
A) the face value of the bond is equal to what the investor paid for the bond.
B) the investor becomes part owner of the corporation.
C) the principal of the bond is a loan to the corporation.
D) the interest made on the bond represents the bondholder's limited liability in the company.
C
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A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to:
A) 208 units. B) 228 units. C) 246 units. D) 322 units.
Suppose the income elasticity of demand for toys is +2.00. This means that:
A. a 10 percent increase in income will increase the purchase of toys by 20 percent. B. a 10 percent increase in income will increase the purchase of toys by 2 percent. C. a 10 percent increase in income will decrease the purchase of toys by 2 percent. D. toys are an inferior good.