According to the ratings given by Moody's and Standard and Poor's, _____ bonds are corporate bonds that carry the lowest risk and offer a lower yield.
a. A+
b. white collar
c. AA
d. blue chip
e. AA+
QUESTION 2Which of the following is a positive statement?
a. Heavy snowfall drives up the demand for heaters.
b. Fiscal expenditures should be increased to combat recession.
c. Government should encourage foreign direct investments to generate employment.
d. Organs trade should be banned across nations.
QUESTION 3The income and substitution effects of a price change occur because:
a. consumer incomes are not constant.
b. consumer substitution rates are not constant.
c. income and substitution effects never occur simultaneously.
d. of diminishing marginal utility and the equimarginal principle.
e. of increasing marginal utility and the equimarginal principle.
QUESTION 4Economic profits are:
a. less than accounting profits if implicit costs are greater than zero.
b. less than accounting profits even if implicit costs are zero.
c. greater than accounting profits if implicit costs are greater than zero.
d. greater than accounting profits even if implicit costs are zero.
QUESTION 5According to the ratings given by Standard and Poor's, a bond rating of _____ implies that the issuer of bonds is in default.
a. A
b. B
c. C
d. D
e. BB
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