Studied by 2 peopleThe financial product that does not publish its value until the end of the trading day is a;
mutual fund
The investment that most probably does not carry a federal tax liability is the;
municipal bond
Under the "rule of 70" at an interest rate of 2% it would take
35
The effect of a price movement along the demand curve can best be depicted by the;
elasticity of demand
The point of intersection between the indifference curve and budget line is;
the probable price consumer will pay
If the percent change in quantity demanded is less than the percent change in price the product is
inelastic
Two products that are close substitutes will probably have a cross elasticity of demand that is;
elastic
The top of the candle wick DOES NOT represent
the opening or closing price or the daily volume
Common stocks are
A certificate of ownership, have limited liability, and are primarily purchased for financial gain
If you were looking to purchase a call option on a listed companies stock it would probably be traded on the
CBOE
A perfectly elastic supply curve is;
horizontal
For a firm to maximize its revenue elasticity must be;
unitary
According to the author the only product that is elastic in the short run would be
restaurant meals
The elasticity of demand is found by using the formula;
% change in the quantity demanded of good A + % change in the price of good B
What determines our choice of products;
our rational behavior, our preferences, budget constraints
A green candle indicates that a stock has closed lower than its opening price at the end of the trading day
false
If Tom Brady's salary is 10 times more than other NFL quarterbacks then his economic profit is that excess over the norm
true
The nominal rate of interest is adiusted for inflation
false
A credit rating of BBB or above is considered investment grade
true
All common stocks pay dividends
false
A firm's financial profit or loss will be the same number as the economic profit
false
NYSE was the first online platform for trading stocks
false
The size of the wick on the trading candle may indicate future trading
true
Where the indifference curve intersects the budget line between two product choices is probably where the consumer will buy both products
true
When elasticity is equal to 1.0 the demand for the product is always inelastic
false
An elastic demand curve means that a change in price has resulted in a noticeable change in quantity
true
Total Utility is the measure of the extra utility we receive from one additional unit of a product
false
Budget constraints play a key role in the decision to buy or not to buy a Particular good
true
Perfect substitutes mean that consumers will choose equal quantities of both given the lack of income constraints
true
A linear demand curve will always be elastic at some point and inelastic at some other point
true
Note
Flashcard