Econ 312 - Exam 2 Question and
answers verified to pass 2025
Ceteris Paribus - correct answer a Latin phrase that means "all other things
held constant"
an ________ is any piece of property that carries value - correct answer
asset
-bonds
-stocks
-land
-houses
value in use - correct answer The usefulness of an asset
value in exchange - correct answer the price of an asset
4 factors that determine the demand level for assets - correct answer 1. an
increase in wealth will increase the quantity demanded of assets
2. a decrease in wealth will decrease the quantity demanded of assets
3. the quantity demanded of an asset increases when its expected returns
relative to alternative assets increase
4. the quantity demanded of an asset decreases when its expected returns
relative to alternative assets decrease
, (holding everything else constant)
risk - correct answer Degree of uncertainty of return on an asset; in business,
the likelihood of loss or reduced profit.
the quantity demanded of an asset increases when the asset has a
_________________ - correct answer lower risk relative to alternative assets
the quantity demanded of an asset decreases when the asset has a - correct
answer higher risk relative to alternative assets
the quantity demanded of an asset increases when the asset is - correct
answer more liquid compared to alternative assets
the quantity demanded on an asset decreases when the asset is - correct
answer less liquid compared to alternative assets
Ceteris Paribus, the quantity demanded of an asset is - correct answer 1.
positively related to wealth
2. positively related to expected returns relative to alternative assets
3. negatively related to risk relative to alternative assets
4. positively related to liquidity relative to alternative assets
Demand curve in a bond market - correct answer i = face value - bond price /
bond price = R^e
i = interest rate (yield to maturity)
R^e = expected rate of return
answers verified to pass 2025
Ceteris Paribus - correct answer a Latin phrase that means "all other things
held constant"
an ________ is any piece of property that carries value - correct answer
asset
-bonds
-stocks
-land
-houses
value in use - correct answer The usefulness of an asset
value in exchange - correct answer the price of an asset
4 factors that determine the demand level for assets - correct answer 1. an
increase in wealth will increase the quantity demanded of assets
2. a decrease in wealth will decrease the quantity demanded of assets
3. the quantity demanded of an asset increases when its expected returns
relative to alternative assets increase
4. the quantity demanded of an asset decreases when its expected returns
relative to alternative assets decrease
, (holding everything else constant)
risk - correct answer Degree of uncertainty of return on an asset; in business,
the likelihood of loss or reduced profit.
the quantity demanded of an asset increases when the asset has a
_________________ - correct answer lower risk relative to alternative assets
the quantity demanded of an asset decreases when the asset has a - correct
answer higher risk relative to alternative assets
the quantity demanded of an asset increases when the asset is - correct
answer more liquid compared to alternative assets
the quantity demanded on an asset decreases when the asset is - correct
answer less liquid compared to alternative assets
Ceteris Paribus, the quantity demanded of an asset is - correct answer 1.
positively related to wealth
2. positively related to expected returns relative to alternative assets
3. negatively related to risk relative to alternative assets
4. positively related to liquidity relative to alternative assets
Demand curve in a bond market - correct answer i = face value - bond price /
bond price = R^e
i = interest rate (yield to maturity)
R^e = expected rate of return
