In the Market for Personal Computers and in the Stock

question 70

Multiple Choice

In the market for personal computers and in the stock market:

• A) supply and demand shifts change prices and quantities.
• B) persistent shortages and surpluses rarely exist.
• C) in response to shifts in demand and supply, equilibrium is restored quickly.
• D) all of the above are true.

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Definitions:

Annuity

A fiscal vehicle offering a steady payout to individuals, commonly employed in retirement strategy.

Payments

The act of transferring money from one party to another, often in exchange for goods, services, or to fulfill a legal obligation.

Compounded Quarterly

Interest added to the principal sum every quarter, or four times a year, resulting in the interest of the next period being calculated on the new total.

Car Loan

A sum of money borrowed to purchase a car, which is expected to be paid back with interest over a set period of time.