The demand for Cheerios cereal is more price-elastic than the demand for cereals as a whole. This is best explained by the fact that:
A. Cheerios are a luxury
B. Cereals are a necessity
C. There are more substitutes for Cheerios than for cereals as a whole
D. Consumption of cereals as a whole is greater than consumption of Cheerios
C. There are more substitutes for Cheerios than for cereals as a whole
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Compared to a monopolistic competitor, a monopolist faces
A) a more elastic demand curve. B) a more inelastic demand curve. C) a demand curve that has a price elasticity coefficient of zero. D) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.
The after-tax rate of return is defined as the pretax profit rate
a. minus the rate at which profits are taxed. b. multiplied by 1 minus the rate at which profits are taxed. c. divided by 1 minus the rate at which profits are taxed. d. plus investment credits. e. None of the above
Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends b. both bankruptcy and higher market interest rates c. only bankruptcy d. lower market interest rates e. both the firm declines to pay dividends and higher market interest rates
If an economy's steady annual growth rate falls from 2.5 percent to 2.0 percent, this adds __________ years to the time it takes for the economy to double in size
A) 24.0 B) 7.0 C) 5.3 D) 10.2