1)

A bond is a ["financial contract: a borrower agrees to repay the amount that was borrowed and also a rate of interest over a period of time in the future.", "risk-free investment", "type of stock in a company", "rate of interest"] and also a ["risk-free investment", "rate of interest", "guarantee of payment", "rate of business growth"] over a period of time in the future. A corporate bond is issued by firms, but bonds are also issued by various levels of government. For example, a ["vested bond", "municipal bond", "corporate bond", "capital stock certificate"] is issued by cities, a state bond by U.S. states, and a ["Treasury bond", "municipal bond", "money bond", "muni-bond"] by the federal government through the U.S. Department of the Treasury.

2)

A bond specifies the following 3 items

Options:

the interest rate that will be paid

amount that will be borrowed

guaranteed amount to be paid at the end

The Bondholder

the time until repayment

expander

3)

Given the fact that a company that has publicly held stock is a publicly held company it is not possible for a publicly held company to have such a company entirely owned by a single person

True or False

4)

firms first sale of stock to the public is called

an initial public offering (IPO)

sale

a subsequent public offering (SPO)

stock repurchase agreement

5)

The ["coupon payment", "expected rate of return", "guaranteed amount", "interest rate"] refers to how much a project or an investment is expected to return to the investor, either in future interest payments, capital gains, or increased profitability. This reflects the amount of ["ROI", "risk", "benefits"] engaged in by the buyer over the projects profitability

6)

The concept of Public Choice Theory

This refers to the fact that political incentives ["don't always", "often", "always", "may"] align with the public good.

This comes from the idea that politicians ["are evil", "are incompetent", "are all incompetent and evil", "are human"] and subject to political ["getting reelected", "any or all of the above", "incentives", "power", "winning"] . This means that Public Choice Theory understands that politicians, like everybody else, are simply ["Purely selfish", "benevolent individuals", "self-interested", "unruly"]

When more than two choices exist, the principle that the majority of voters should decide may not always make logical sense, because situations can arise where it becomes ["necessary to have an election to decide", "simple to decide", "literally impossible to decide"] what the majority prefers. Government may also be slower than private firms to correct its mistakes, because government agencies ["face stiff competition from voters", "are slow", "do not face competition or the threat of new entry.", "are efficient at most things"] . The result of the voters deciding means that the minority ["gets nothing", "gets to re-vote", "gets their choice"]

7)

This theory of ["rational ignorance", "rationality", "the rational voter", "knowledge"] holds that people will not vote if the costs of becoming informed and voting are too high, or they feel their vote will not be decisive in the election.

8)

Suppose that we are seeking to produce 100 pounds of a product for the population

Suppose that 29% of the voters seek the production of product A

while 20% seek production of product B

and 51% seek the production of product C.

In the above scenario given a democratic election we would see ["only product C would be produced", "Products A, B & C would be produced i their relative desired shares", "twice as much of product C would be produced compared to A"]

in a market scenario we would see that ["", "only product C would be produced", "", "Products A, B & C would be produced i their relative desired shares", "", ""]

This is because democracy is a ["the consumer is sovereign", "winner take all", "consumer driven"] system where in a market ["the consumer gets what he can", "the consumer is sovereign", "the consumer is spurned"]

9)

Having Health insurance means you can always see a doctor

True

False

10)

healthcare is the method used to pay for the doctor

True

False

11)

Healthcare and Health Insurance are easily interchangeable terms

True

False

12)

Employer-provided private health insurance began in the United States because ["poor health conditions at the beginning of the 20th century prompted the U.S. government to require new companies to offer health insurance to employees.", "the American Medical Association successfully lobbied the U.S. government to provide subsidies to companies offering private health insurance to employees.", "during the Great Depression and then World War II, wage and price controls forced employers to use nonwage forms of compensation to attract workers.", "the rising threat of socialism prompted U.S. companies to provide insurance to dampen enthusiasm for socialist reform."] which means that its due to ["a problem with capitalism", "a problem that the government created via market interventions", "a lack of social welfare", "a lack of individual care for the public"]

13)

4 of the general problems associated with the U.S. health care system are

frivolous malpractice lawsuits.

the disconnect between payers and users

that workers lose their insurance when they lose their jobs.

too little government spending

an overabundance of scanning machines.

A lack of a market based price alocation

Government regulation and heavy involvement in the system

too much profit incentives for greedy doctors

too little government spending

14)

A political action often falls under the ["free-rider", "Public Choice", "Principle Agent", "parasite"] problem where some pay but all receive even if the don't pay.

They also run up against the ["Moral Hazard", "asymmetric information", "high information", "information overload"] problem where the incentives to be knowledgeable are low due to the relatively low benefit and high cost of doing so. This results in those with the most benefit of a policy to be the most informed of that policy