Anonymous asked in Social ScienceEconomics · 1 decade ago

A few econ Questions I desp. .need help with - Please?

1. Suppose the interest rate on a bond is 12.5 percent, the bond pays $90 a year in interest, and it sells for $720. If the supply of bonds increases and the price of the bond falls to $600, the intrest rate will(increase or decrease?) to (What percent?)

2. Which of the following concepts is irrelevant in making internationa trade decisions?

A. Domestic surpluses and shortages

B. opportunity cost

C. comparative advantage

D. Relative opportunity cost

E. Absolute advantage

3. Countries import goods in which they have:

A. a comparative advantage

B. an absolute advantage

C. a comparative disadvantage

D. a tremendous shortage

4. If a bonds sells for 2000 and pays 200 per year in interest, what happens to the current interest rate if the price of the bond changes to 1800?

1 Answer

  • 1 decade ago
    Favorite Answer

    2. E

    3. C

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