Dell Computers Decides to Produce PCs and Sell Them Directly

question 78

Multiple Choice

Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of

• A) incentives.
• B) a microeconomic decision.
• C) a macroeconomic decision.
• D) scarcity.

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Definitions:

Forward Rate

The agreed-upon price for a financial transaction to be executed at a future date, used particularly in currency and interest rate markets.

2-year Bond

A debt security that matures in two years and typically offers periodic interest payments.

Stripped Treasuries

Securities derived from U.S. Treasury bonds by separating the coupons from the principal, allowing them to be sold separately as zero-coupon bonds.

Pure Yield Curve

A theoretical representation of the rates of interest for zero-coupon bonds across different maturities under the assumption of no risk.