Table 1 -1

question 16

Multiple Choice

Table 1 -1. Supply and Demand for Personal Computers

-Refer to Table 1 -1. At a market price of $1,700, there will be

• A) a surplus or a shortage of 2,000 computers.
• B) a shortage of 2,000 computers.
• C) a surplus of 2,000 computers.
• D) neither a surplus nor a shortage of computers as the market is in equilibrium at this price.

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Definitions:

Prepaid Property Tax

An expense that has been paid in advance for property taxes, recognized as a current asset until the period it covers arrives.

Bonds

Fixed income investments representing a loan made by an investor to a borrower, often corporate or governmental, which pays periodic interest payments.

Discount

A reduction from the full price or value of a good, service, or financial instrument.

Face Amount

The nominal value stated on the face of a financial instrument, such as a bond, that the issuer promises to pay at maturity.