Related to the Economics in Practice on Page 302: a Pair

question 61

Multiple Choice

Related to the Economics in Practice on page 302: A pair of shoes at a local department store has a marked retail price of $80. These shoes are on a sale table where all items are priced at 25 percent off the retail price. The store is also having a promotion of an additional 25 percent off all sale-priced shoes. Based on these stackable discounts, what is the actual selling price of these shoes?

• A) $25
• B) $40
• C) $45
• D) $60

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Definitions:

Efficient Capital Market

A market in which securities' prices fully reflect all available information, making it impossible to consistently achieve higher returns without taking additional risks.

Income Component

Income Component pertains to the portion of a financial product's return that is generated from the payment of interest or dividends.

Capital Gain

The profit earned from the sale of an asset like stocks, bonds, or real estate, which exceeds its purchase price.

Asset Classes

Categories of investments that exhibit similar characteristics, behaviors on the market, and are subject to the same laws and regulations.