If a vacation in Paris is a normal good, other things being equal, an increase in consumer income will increase the demand for travel to Paris
a. True
b. False
Indicate whether the statement is true or false
True
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An incentive conflict is when
a. The agent and the principal have identical incentives b. The agent has different incentives than does the principal c. The agent and the principal neither have any incentives to work hard d. None of the above
The entry of new firms into an industry will very likely
A. shift the industry supply curve to the right. B. cause the market price to fall. C. reduce the profits of existing firms in the industry. D. All of the responses are correct.
Which of the following describes the effect on the domestic market of tariffs imposed on imported wool blankets?
a. Fewer wool blankets will be sold overall. b. Prices for domestic wool blankets will fall. c. Sales will fall for domestic wool producers. d. Imported wool blanket sales will increase.
Suppose that a bond is purchased at a discount (meaning that it is sold for less than face value). Could the yield to maturity ever be less than the coupon rate? Could the holding period return be less than the coupon rate? Explain.
What will be an ideal response?