A main cause of the cost disease of personal services is
a. the change from an agrarian to an industrial society.
b. labor-saving innovations in the service industries.
c. the unevenness in growth of productivity in the economy.
d. massive increases in industrial production at the expense of consumer goods production.
c
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The concept of price elasticity of supply measures the
A. sensitivity of sellers to price changes. B. slope of the supply curve. C. number of sellers in a market. D. extent to which the supply curve shifts as the result of a price decline.
If we ignore the negative or positive sign, the midpoint method of calculating a percentage change in price between two points on a demand curve results in
A) a smaller percentage change if the price rises than if it falls. B) the same percentage, regardless of whether the price increases or decreases. C) the price elasticity of demand. D) the price elasticity of supply. E) a higher percentage change if the price rises than if it falls.
Under the efficient markets hypothesis, what would be the price per share of a company whose current dividend is $10.00 and whose dividends are expected to grow by 3% per year (assume the risk-adjusted interest rate is 10%)?
A) $74.62 B) $79.23 C) $142.86 D) $147.14
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $200 per year and will make a final par value payment of $5,000 at maturity, what is its price if the relevant market interest rate is 3%?
A) $5,185.85 B) $5,304.26 C) $5,743.42 D) $6,011.82