Last Year,Danielle Bought a Bond for $10,000 That Promises to Pay

question 88

Multiple Choice

Last year,Danielle bought a bond for $10,000 that promises to pay $350 a year.This year,a person who buys a bond for $10,000 receives $325 a year.If Danielle were to sell her (old) bond,its price would be approximately

• A) $9,286.
• B) $10,769.
• C) $11,456.
• D) $9,119.

Understand the characteristics that differentiate private goods from public goods, specifically rivalry and excludability.

Apply the concepts of marginal cost and marginal benefit to determine the optimal level of resource allocation for public goods.

Understand the concepts of externalities and how they impact the efficient provision of public goods.

Recognize the principal-agent problem in corporations and its implications for corporate governance.

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Definitions:

Psychosocial Stages

A theory proposed by Erik Erikson, which posits that individuals go through eight developmental stages, each involving a specific conflict that must be resolved.

Erikson

A developmental psychologist known for his theory on the psychosocial development across eight stages from infancy to adulthood.

Industry

The production of goods or related services within an economy, or a specific sector of production or trade.

Irreversibility

The cognitive incapacity in early childhood to understand that actions, once performed, can be undone to return to the original state.