The development of MP3 players and online streaming, which significantly reduced the market for CDs, is an example of:
A. roundabout production.
B. creative destruction.
C. derived demand.
D. specialization.
Answer: B
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The DeBeers Company of South Africa was able to block competition through
A) ownership of an essential input. B) differentiating its product. C) government-imposed barriers. D) economies of scale.
Using the one-period valuation model, assuming a year-end dividend of $0.11, an expected sales price of $110, and a required rate of return of 10%, the current price of the stock would be
A) $110.11. B) $121.12. C) $100.10. D) $100.11
When the real quantity of money supplied equals the real quantity of money demanded, there is said to be
A) goods market equilibrium. B) asset market equilibrium. C) monetary neutrality. D) money illusion.
The ability to produce the same quantity of a good or service using fewer units of labor is known as
A) competitive dominance. B) productive dominance. C) comparative advantage. D) absolute advantage.