1. Suppose the price of gold is $850 per ounce.

a. If the pound sterling price of gold is £560 per ounce, what should you expect the pound price of a dollar to be?

b. If it actually only costs £0.50 to purchase a dollar, could you make a profit here? If so, how? And if not, why not? (2 pts)

c. How will the bond be affected Increase, Decrease, or stay the same

The bond is exempt from federal income taxes. ________________

Do you think that the intervention by the government in implementing price ceilings or price floors is justified in today's time; why or why not? Are the consumers getting what they want; why do you believe this to be so? Are the suppliers able to sell what they produce; why do you think so?

Use an example from another country besides United States to justify your reasoning.

In general, a tax raises the price the buyers pay, lowers the price the sellers receive, and reduces the quantity sold.

Select one:

True

False

Question 23

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Which of the following goods would you expect to have an elastic demand with respect to income?

a.

Restaurant meals

b.

Floor

c.

Gasoline

Clear my choice

Question 24

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Economists assume that economic decisions are made rationally. In the case of consumers, rational decision-making means: that consumers buy the sorts of goods that the average person buys.

Select one:

True

False

Question 25

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When a government decides to place a tax on a given product, both the producer and consumer surplus will decrease.

Select one:

True

False

Question 17

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When a tax is placed on a good, the revenue the government collects is exactly equal to the loss of consumer and producer surplus from the tax.

Select one:

True

False

The government in the UAE announced that for every 10 per cent rise in the price of cigarettes, the demand was likely to fall by 6 per cent. This means that the price elasticity of demand for cigarettes is

a.

6

b.

-0.06

c.

-0.6

d.

0.6

Stock price = £30. In 2 months, two months the price will be either £33 or £27. The risk-free interest rate is 10% p.a on a continuous compounding basis.

What will be the value of a 2-month European put option with a strike price of £31?

Please provide a step by step explanation as I would like to fully understand and not just copy the answer. Thank you :)

Do you think that the intervention by the government in implementing price ceilings or price floors is justified in today's time; why or why not? Are the consumers getting what they want; why do you believe this to be so? Are the suppliers able to sell what they produce; why do you think so?

Use an example from another country besides United States to justify your reasoning.

the demand for beef is

P = 150 - 3Q

where price is price per pound in cents and Q is quantity demanded per year in hundreds of pounds

The supply curve is

P = 5Q

If a price floor of 50 cents per pound is imposed what are the new consumer and producer surplus?

When the demand for a product is price elastic, a rise in its price causes total revenue to:

Select one:

a. fall because quantity sold remains the same and thus total revenue falls.

b. fall because the higher price per product is not enough to offset the decrease in revenue from the fall in quantity sold.

c. rise because the higher price per product will more than offset the fall in revenue due to the decrease in quantity sold.

d. fall because the quantity sold will decrease, therefore total revenue falls.

f the supply and demand curves intersect at a price of $7, then any price above that would result in:

A)

equilibrium

B)

an increase in demand

C)

a surplus.

D)

a shortage.

Suppose due to a faster than usual decrease in population, there is an excess supply for water in Manitoba. This means that we can expect the price of water to increase in Manitoba over time.

Question 39 options:
A) True
B) False

Price gouging is a phenomenon that occurs when a seller increases the price of goods, services or commodities to a level much higher than is considered reasonable or fair, for example, during a natural disaster.

Should there be laws against price gouging? Why or why not? Explain your position.