(Figure: Wireless Mouse Market) Look at the figure Wireless Mouse Market. Use the graph to calculate consumer surplus when the market is at equilibrium.
A) $5,000
B) $2,500
C) $3,000
D) $4,000
B) $2,500
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country B will, after the emigration of labor:
A. Increase by area qrs
B. Increase by area qtus
C. Decrease by area qrs
D. Decrease by area qtus
If the MPC = 0.8, and intended investment rises from $100 to $150, national income will increase by
a. $50 b. $125 c. $20 d. $250 e. $200
Taxation is an important cash flow issue, but it typically does not have a strong impact on the choice of organizational form (such as branch or subsidiary) or the location of an investment.
a. true b. false
Answer the following statements true (T) or false (F)
1. Arbitrage refers to the buying and selling activities that cause an equalization of the rates of return on assets that have substantially different characteristics. 2. If investors have two identical assets that have different rates of return, the investors will sell the asset with the higher rate of return to buy the asset with the lower rate of return. 3. Arbitrage activities will make the price of the asset with the higher initial return increase, while the price of the asset with the lower return will decrease. 4. Risk in financial economics refers mainly to the chance that an investment could lose value. 5. Diversification is an investment strategy that seeks to reduce the overall risk in an investment portfolio by selecting a group of assets whose risks differ from one another.