Over the Past Decade Technological Improvements That Have Lowered the Cost

question 459

Multiple Choice

Over the past decade technological improvements that have lowered the cost of producing an automobile have increased

• A) both the supply and the demand for automobiles.
• B) the supply but not the demand for automobiles.
• C) the demand but not the supply of automobiles.
• D) neither the supply nor the demand for automobiles.

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Definitions:

TIPS

Treasury Inflation-Protected Securities; these are U.S. government bonds that are indexed to inflation to protect investors from the negative effects of rising prices.

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of the company's shares at certain times during their life, usually at the discretion of the bondholder.

Premium Bond

A bond trading above its face value or principal amount, often due to lower market interest rates compared to the bond's coupon rate.

Capital Gain

The profit earned from the sale of an asset or investment when the selling price exceeds the purchase price.