Question

The table below shows interest rates on 10-year bonds for a sample of countries that share a common currency (the euro) (Source: Bloomberg, 08/2018). Assume that investors are not entertaining the possibility that one of these countries will abandon the euro (and expose investors to exchange rate risk). Which country is likely considered to be the greatest default risk among the group?

France	0.68%
Italy	3.09%
Spain	1.45%
Netherlands	0.42%
Portugal	1.82%
Greece	4.21%

Question 16 options:

	Spain
	Italy
	Greece
	Netherlands

In a mixed economy, who determines what to produce?

Question 17 options:

	Markets
	Individuals
	Individuals and government
	Government

Investors are more willing to put money into limited liability companies than partnerships because:

Question 18 options:

	Only their investment in the company is at risk if the business fails.
	Partnerships are limited to a maximum of two investors.
	The US government reimburses shareholders for any losses from investing in limited liability companies.
	Partnerships require a close relationship with other entrepreneurs.

Question 19 (0.5 points)

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For an economist, a technology is:

Question 19 options:

	A capital-intensive method of production.
	A computer.
	Any production technique that is patented.
	A method of combining resources to make goods and services.

What is the key concern of engineering economics?

Question 20 options:

	Resources are scarce.
	Costs and revenues in engineering decisions accrue over periods of years.
	Consumers are unpredictable.
	Corporate taxation is complex.

Answer 1

Questions 16

Answer is Netherlands  

Because interest rate is lowest and high chances of defaults risk due to excessive lending.

Question 17

Mixed economy is determined by Individuals and Government  

Because both have considerable rights to sustain economy.

Question 18

Investors invest in limited liability rather than partnerships because

Only investment is at risk if company fails.

LLP have limited risks and not liable for investigation .

Question 19

Technology for economists is

Method of combining resources to make goods and services.

Question 20

What is key concern of engineering economics?

Costs and revenues accrue over period of years.

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