A bubble occurs when
A) the price of a stock is above its fundamental value.
B) inside information is used to make profits from trading a company's stock.
C) a company reports profits that are significantly above or below the expectations of financial analysts.
D) the futures price is greater than the price of the underlying asset.
A
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Refer to the figure above, which shows domestic supply and demand. If P1 is equal to P2 (the world price) plus a tariff, then government revenue from the tariff is equal to
A) a + c B) b C) P1 ( Q3 - Q2 ) D) P2 [(Q2 - Q1 ) + (Q4 - Q3 )] E) a + b + c
Suppose Sandy is moving to Washington, D.C. for a year-long job working for the government. She has decided to rent one of two apartments. Both apartments cost $1,000 per month and are identical except for the fact that one is a monthly rental and the other has a year-long lease. Which of the following best explains why Sandy might pick the year-long lease?
A. There is no good reason for Sandy to pick the year-long lease because the monthly rental allows her more flexibility. B. Sandy might worry that if she picks the monthly rental, she will get kicked out if the landlord finds someone willing to pay more than $1,000 per month. C. Sandy might worry that if she picks the monthly rental, she will have to move if she finds another apartment for less than $1,000 per month. D. There is no good reason for Sandy to pick the year-long lease because the two apartments are identical.
When import quotas are imposed by a government
A. the supply of the product on the domestic market increases. B. the domestic producers always lower the prices of their products to ensure that their products are sold. C. the government is trying to discourage consumers from buying foreign-made goods. D. the price ceiling for the product has to be lowered.
One of the problems of transfer prices comes from the successive impact of the prices as the product moves downstream toward the consumer. At each step, the transfer price becomes the ________ for the next part of the company.
A. marginal cost B. negotiated price C. total cost D. market price