For Many Years Short Wave Radios Were a Way of Getting

question 93

Multiple Choice

For many years short wave radios were a way of getting news from faraway places and in difficult conditions. But as new technologies have spread, the people listening to these devices has decreased. (Source: The Economist, July 7, 2012) As new technology creates substitutes for short-wave radios, the demand for short-wave radios ________ and the consumer surplus from short-wave radios ________.

• A) increases; increases
• B) decreases; decreases
• C) does not change; decreases
• D) decreases; does not change

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Definitions:

Dividend Yield

A financial ratio measuring the dividend income relative to the price of the stock, indicating how much a company pays out in dividends each year relative to its share price.

Coupon Yield

The annual interest rate paid on a bond's face value, indicating the amount of interest received by bondholders annually.

Common Stock

Equity ownership in a corporation, where shareholders have voting rights and potentially receive dividends.

Capital Gains Rate

The capital gains rate is the tax rate applied to profits from the sale of assets or investments, which can vary based on the asset's holding period and the taxpayer's income level.