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