What are explicit costs? What are implicit costs?
What will be an ideal response?
Explicit costs are costs that are measured in dollars and that typically involve some exchange of money. Implicit costs are costs that do not involve an exchange of money.
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How much is a bond that pays $80 in coupon payments for 4 years and $1,000 at the end of the fourth year worth if the interest rate is 6%?
A) $855.46 B) $1,045.56 C) $1,069.30 D) $1,140.00
Explain and show graphically how an increase in incomes in the United States will affect equilibrium in the foreign exchange market?
What will be an ideal response?
The ________ of a coupon bond and the yield to maturity are inversely related
A) price B) par value C) maturity date D) term
The president of the Micro Brewing Corporation asks you, as the company economist, to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50
to $7.50, the quantity demanded will decrease from 2200 units to 1800 units a month. Should the Micro Brewing Corporation raise its price? Explain the economic basis for this recommendation to the president. Please provide the best answer for the statement.