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Author Question: What do foregone interest on money invested in a firm, wages paid to production workers, interest ... (Read 210 times)

hbsimmons88

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What do foregone interest on money invested in a firm, wages paid to production workers, interest paid on bank loans, and the purchase of parts for assembly have in common?
 a. All are explicit costs.
 b. All are implicit costs.
 c. All are opportunity costs.
 d. None are opportunity costs.

Question 2

Which of the following describes the relationship between bond prices and bond yields?
 a. There is a positive relationship between the yield and the price.
  b. Every 1 increase in the bond price results in a 2 increase in the yield.
  c. When the bond price is greater than the annual interest, yield is greater than one.
  d. Bond price divided by the bid price is equal to the yield.
  e. There is an inverse relationship between the yield and the price.



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kusterl

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Answer to Question 1

c

Answer to Question 2

e





 

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