If a bank pays 12% interest, and that bond has a selling price of $1,200 and a face value of $1,000, how much interest does it pay?
What will be an ideal response?
$120
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The diagram below shows Spencer's annual demand for videos. Spencer currently rents videos from Blockpopper's, which charges $2.50 per rental.
(i) How many videos does Spencer rent each year? How much consumer's surplus does Spencer receive from renting videos?
(ii) Blockpopper's starts a "frequent viewers" club. For a membership fee of $35 per year, club members can rent as many videos as they wish at the discounted price of $2 per rental. Should Spencer join the "frequent viewers" club? If yes, how much surplus value would Spencer receive as a club member? If no, what membership fee would Spencer be willing to pay to join the club?
If a person prefers a gamble with an expected value of $100 to a sure $100 that person is
A) irrational. B) a risk lover. C) nonsystematic. D) managing a portfolio.
When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing _______–oriented policies
Fill in the blank(s) with correct word
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
 Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the airlines, then the
airlines and the residents engage in negotiations. The resulting efficient level of air travel is A. 0 units. B. 100 units. C. 120 units. D. indeterminate from the given information.