Premium beer is likely considered
A) a normal good.
B) an inferior good.
C) to have inelastic demand.
D) to have perfectly elastic demand.
A
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The European Economic and Monetary Union
A) set up a single currency and sole bank for European economic monetary policy. B) eliminated all barriers to trade such as tax differentials between borders. C) produced a single government for handling European affairs. D) created the Common Agricultural Pact. E) eliminated all local currencies in Western Europe.
Coffee and tea are:
a. complements. b. substitutes. c. inferior goods. d. unrelated goods. e. nonmarket goods.
Which of the following would not lead to higher concentration in an industry?
A. A large number of firms have entered the market. B. Some firms have become technologically superior. C. Larger firms gain control of important resources, squeezing out smaller firms. D. Innovation increases plant size of some firms and lowered their average costs.
Suppose you purchase shares in Acme Gadget Company for $10 per share. The company believes there is a 20 percent chance it will fail to earn a discounted future profit of $1.85. What is the expected rate of return on your investment?
A. 18.5 percent. B. 20.0 percent. C. 13.5 percent. D. 14.8 percent.