Examlex

Solved

If There Are Significant External Benefits Associated with the Consumption

question 141

Multiple Choice

If there are significant external benefits associated with the consumption of a product, it can be said that the private benefit to the consumer understates the relative importance of this product to society. In order to move towards efficiency, what should happen to output?


Definitions:

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used in relation to bonds to describe the percentage return based on the bond's current market price.

Coupon Bonds

Bonds that pay the holder a fixed interest rate (coupon) over the life of the bond, and then return the principal at maturity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing entity.

At Issue

A term often used when new securities are released to the market, indicating they are currently being offered for sale to the public.

Related Questions