The market clearing price of a good is
A. the price at which there is no surplus and no shortage.
B. the price that consumers prefer.
C. the price that producers prefer.
D. the price at which there is at least some of the good available for everyone.
Answer: A
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What would you expect the market value to be for a four year bond that has a face value of 10,000 and a coupon return of $2000 when the market interest rate is 6%?
A) $14,851.15 B) $6,930.21 C) $13,742.22 D) $18,000.00
Suppose you know a piece of land will be worth $1 million (real) in 2045, and the real interest rate is 5%. About how much should you be willing to pay for the land today (2015)? (Assume no taxes)
a. $610,000 b. $1 million c. $1.89 million d. $230,000
An economic system that answers the What, How, and For Whom questions using prices determined by the interaction of the forces of supply and demand is a:
a. market economy. b. command economy. c. traditional economy. d. none of these.
Refer to Scenario 9.4 below to answer the question(s) that follow. SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.Refer to Scenario 9.4. The annual total costs of the deli are
A. $42,000. B. $52,000. C. $156,000. D. $208,000.