Which of the Following Is the Best Definition of Economics

question 170

Multiple Choice

Which of the following is the best definition of economics?

• A) the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided
• B) the study of how consumers spend their income
• C) the study of how business firms decide what inputs to hire and what outputs to produce
• D) the study of how the federal government allocates tax dollars

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Definitions:

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Coupon Rate

Yearly interest payment on a bond, specified as a percentage of its listed value.

Bond Prices

Bond prices are the market value of bonds, which can fluctuate based on interest rate changes, credit risk, and other factors.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, which can influence economic activity by encouraging or discouraging spending and investment.