Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect
a. income
b. endowment
c. substitution
d. price
e. scale
c
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The point price elasticity of demand for red herring is -4. The demand curve for red herring is: Q = 120 - P. What is the price of red herring?
A) $96 B) $80 C) $100 D) $120 E) none of the above
The term "balance of trade" refers to a nation's:
a. goods exports minus imports. b. current account balance. c. capital account balance. d. net balance of all international transactions.
A market with easy entry could include
A) perfect competition. B) monopolistic competition. C) an oligopoly. D) a. and b. are possible
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.
A. $10,000; 4 percent; four years B. $10,000; $400; 4 percent C. $400; 40 percent; four years D. $10,400; 4 percent; four years