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Couple of Other Economics Questions - Quickies once again
The law of opportunity cost stats that:
a. as cost increases, people buy less of a good. b. consumption and opportunity cost are inversely related. c. the more of something that is produced, the greater the opportunity cost of producing an additional unit. d. the more of something that is produced, opportunity cost falls. e. as production of one good increases, we must give up some of another good. 2. An issuer of bonds is a. a borrower of funds. b. buying part ownership of a firm c. a lender of funds. d. making a long term loan to the buyer. Again, I'm not trying to get you to do my homework, especially as these questions are relatively questions, but I just need to reassure. Thanks. |
#2
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Re: Couple of Other Economics Questions - Quickies once again
1. I'm thinking E.
2. A |
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Re: Couple of Other Economics Questions - Quickies once again
For 2, wouldn't it be a lender of funds, cause when you issue a bond, you're basically loaning them 1000 dollars and giving them interest?
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Re: Couple of Other Economics Questions - Quickies once again
when you issue you a bond you give them a note and they give you money
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Re: Couple of Other Economics Questions - Quickies once again
When you issue bonds, you are borrowing money from people.
If I wanted to build a new business, I would sell bonds to raise capital. People would invest in my bonds and I would be borrowing money from them in return for repayment of interest and the original investment in a set period of time. |
#6
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Re: Couple of Other Economics Questions - Quickies once again
gah, dunno why I had it backwards.
For 1, aren't both (c) and (e) both logical options? |
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