An asset's fundamental value equals
A) its face value.
B) its maturity value.
C) the market's best guess of the present value of the asset's expected future returns.
D) the weighted sum of its market price over the recent past.
C
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A current account surplus exists when
A. net exports are positive. B. net exports are negative. C. financial flows out of a country for goods and services exceeds financial flows into the country for its goods and services. D. imports exceed exports.
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to average total cost, then:
A. this firm would earn excess profit. B. total revenue would equal marginal revenue. C. the firm would suffer losses. D. revenue would just be sufficient to cover costs.