The foreign exchange market refers to:
a. a physical place in the heart of New York City's financial district, where traders come to trade other currencies.
b. a collection of all purchases and sales of one currency for another,where exchange rates are determined.
c. the discount window of the Federal Reserve.
d. the commodity futures market.
Answer: b. a collection of all purchases and sales of one currency for another,where exchange rates are determined.
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If actual output is greater than equilibrium output, firms will ________ output to keep from ________ inventories
A) increase; accumulating B) increase; depleting C) decrease; depleting D) decrease; accumulating
In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions. B) consumers are motivated by a sense of the greater good, not their own self-interest. C) firms are motivated by a sense of the greater good, not their desire for profit. D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.
Hoe does etiquette help in transaction of goods between two parties?
Which of the following is designated by point B’ in Exhibit 4?
a. Calvin has a higher opportunity cost than Wendy in cloth production.
b. By specializing in food, Wendy can produce 10 pounds of food per day.
c. Together Calvin and Wendy can produce 13 pounds of food per day.
d. Wendy has a higher opportunity cost than Calvin in food production.