Which of the Following Is Not an Example of the Use

question 35

Multiple Choice

Which of the following is not an example of the use of the problem solving perspective provided by economics?

• A)An investor considers the tax consequences of selling stocks in order to buy bonds (which she believes offer a better return).
• B)A rancher recognizes that raising more cattle this year will damage his pasture and limit next year's herd size.
• C)The Fogelberg family takes its vacation at Lake Arrowhead this year simply because they have done so for as long as anyone can remember.
• D)An economics student contemplates the other subjects that she should be studying before deciding to study economics this evening.

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Definitions:

Discount

A reduction from the usual cost of something, often applied to prompt payments or for certain groups of people like students or seniors.

Issue Price

The price at which new securities are offered to the public by an issuer.

Present Value

Today's value of a future financial sum or series of payments, calculated with a certain return rate.

Market Rate

The current price or interest rate of goods, services, or securities in the marketplace, determined by supply and demand forces.