An important factor in stock prices that is separate from interest rates and profit expectations is
A. Securities and Exchange Commission mandates on stock prices.
B. the expected price of the stock in the near future.
C. Board of Directors' mandates on stock prices.
D. CEO desires.
Answer: B
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A certain amusement park offers a 50 percent discount to kids between the ages of 8 and 14 years. This is an example of:
A) shadow pricing. B) first-degree price discrimination. C) third-degree price discrimination. D) second-degree price discrimination.
Which of the following is a characteristic of a competitive price-taker market?
a. Profit maximizing firms in the market will expand output until price equals average variable cost. b. The market demand curve for the product is a horizontal line. c. There are many firms in the market, each producing a small share of total market output. d. The product produced by each of the firms is differentiated.
The expenditure schedule and the aggregate demand curve show much the same thing, with one crucial difference-the price level. How does the price level affect the two schedules?
Doubling the future value will cause the:
A. present value to decrease. B. present value to increase by less than 100%. C. present value to double. D. interest rate, i, to decrease.