Microeconomics Is Defined as That Part of Economic Analysis That

question 146

Multiple Choice

Microeconomics is defined as that part of economic analysis that

• A) studies the behavior of the economy as a whole.
• B) includes the problems of inflation and unemployment.
• C) studies individual decision making by households and firms.
• D) concerns aggregate production and consumption.

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Definitions:

Clean Price

The price of a bond net of accrued interest; this is the price that is typically quoted.

Coupon Bond

A type of bond that pays the holder periodic interest payments based on a predetermined rate (the "coupon rate") until it matures, at which point the principal (or face value) is repaid.

Yield To Maturity

The total expected return on a bond if held to its maturity date, including both interest payments and any gain or loss if the bond was purchased at a discount or premium.

Market Price

The current price level for transactions involving assets or services in a trade environment.