Final
the risk premium is the
Difference in rates of return on safe and risky investments.
the present discounted value of $60,000 to be received at the end of 3 years when the interest rate is 10% is closest to
$45,079
an increase in the value of an asset, such as a stock, is called a
capital gain
Which of the following is a barrier to entry into a monopoly market?
economies of scale
if two goods are complementary goods, then
The cross-price elasticity sign will be negative.
a cartel is
a public agreement between firms or countries to restrict production and raise prices
a technological advance would best be represented by
a shift outward of the production possibilities curve
a tax imposed on imported goods is
a tariff
pb and j are complements. a decrease in the price of one will result in
an increase in demand for the other
The first sale to the general public of stock in a corporation is referred to as
an initial public offering
implicit costs
are the total opportunity costs of resources and inputs used to produce a good
If the price of Coke rises by 5 percent and the sales of Pepsi go up by 10 percent, we can conclude that
both goods are substitute goods because the cross-price elasticity is +2
goods and services sold to foreign buyers are
exports
maximizing revenue maximizes profit
false
the longer one has to wait for a future payment, the greater present value it has
false
the production possibilities decrease as more resources and better technology are utilized
false
the study of how decisions are made when strategic interactions between firms exist is known as
game theory
Medicare is an example of
in-kind income
the change in total cost that results from one unit increase in production
marginal cost
scarcity means that
society's desires exceed resources available
If an oligopolist is going to change its price or output, its initial concern is
the response of its competitors
the united states has a trade deficit, this means that
the trade balance is negative
the profit motive encourages businesses to produce the goods and services consumers desire
true