A share of stock expected to pay an annual dividend of $10 forever has a market price of __________ when the Treasury bond rate is 6% and the stock has a risk premium of 4%

Which of the following is NOT a feature of a common market?

A) Substantial coordination of macroeconomic policies among the members B) Free trade in goods and services between the members C) Common external barriers to trade D) Factor mobility

The substitution effect of a decrease in the price of an inferior good encourages the consumer to purchase more of the good while the income effect encourages the consumer to purchase less of it

a. True b. False