If Changing Consumer Preferences Increase the Demand for Satellite Radios

question 569

Multiple Choice

If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

• A) an increase in the natural rate of unemployment.
• B) a decrease in the natural rate of unemployment.
• C) frictional unemployment.
• D) efficiency wages.

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Definitions:

Internal Control

Internal control encompasses the policies and procedures implemented by a business to safeguard its assets, ensure accurate financial reporting, promote accountability, and prevent fraud.

Price-Earnings Ratio

A valuation metric for stocks, calculated as the market price per share divided by the earnings per share (EPS), indicating the dollar amount an investor can expect to invest in a company to receive one dollar of that company's earnings.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Market Price

The present rate at which a service or asset is available for purchase or sale on the public market.