Question 42(1 point)

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

Question 42 options:

a)

a societal good

b)

a private good

c)

a public good

d)

a normal good

Question 43(1 point)

According to Malthus's view, which of the following is a consequence of increased population?

Question 43 options:

a)

increased GDP per person

b)

more people imply more ideas and more labour force, which promotes growth

c)

depletion of productive resources and lower standards of living

d)

increase in productivity in the food sector, which is necessary to support the increase in population

Question 44(1 point)

All else equal, which of the following would tend to cause GDP per person to rise?

Question 44 options:

a)

high population growth

b)

shift in production function as a result of technological change

c)

rapid growth in the number of workers

d)

policies to reduce imports

Question 45(1 point)

What is a bond in a formal manner?

Question 45 options:

a)

a financial intermediary

b)

a certificate of indebtedness

c)

a certificate of partial ownership in an enterprise

d)

a mortgage

Question 46(1 point)

What is the face value of a bond?

Question 46 options:

a)

the market price of the bond

b)

the difference between the amount owned by the issuer and the market price of the bond

c)

the amount owed by the issuer

d)

the interest earned by the owner of the bond

Question 47(1 point)

How is a perpetuity, or consol, distinguished from other bonds?

Question 47 options:

a)

It pays continuously compounded interest.

b)

It pays interest only when it matures.

c)

It never matures.

d)

It will be used to purchase another bond when it matures unless the owner specifies otherwise.

Question 48(1 point)

Which of the following bonds is most likely to default?

Question 48 options:

a)

a junk bond

b)

a municipal bond

c)

a federal government bond

d)

a corporate bond issued by Tim Hortons