Which of the following lies primarily within the realm of microeconomics?
a. an empirical analysis of the relationship between the growth of the money supply and the rate of inflation
b. an economic model forecasting the impact of a tax increase on consumer spending and national output
c. a study of supply and demand conditions in the market for orange juice
d. a model forecasting the impact of a change in interest rates on the level of investment in the economy
c
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Suppose you are considering buying shares of a stock to hold for one year. The stock has an expected annual dividend of $2 and an expected price at the end of the year of $25
If your required rate of return is 10%, what is the most that you should be willing to pay for the stock? Round off to the nearest cent.
The only decision that a perfectly competitive firm makes is:
a. what price to charge. b. what quantity to produce. c. how much to spend on advertisements. d. how much to discriminate on the basis of price. e. how to differentiate its products from its rivals.