Which of the following is true?
What will be an ideal response?
Actual output may be either above or below potential output depending on how fully resources are utilized
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For the settlement of futures contracts, the clearing corporation requires that a margin be placed with the corporation by
A) the short position only. B) the long position only. C) the short and the long in all contracts. D) the short and the long only in extraordinary circumstances.
Economics is about the allocation of scarce resources. Which of the following is NOT an example of economic scarcity?
A) If Steve goes to see a movie on Saturday, he will not be able to afford buying ice cream. B) If Jenny studies for her economics quiz this evening, she will not have time to walk her dog. C) If General Motors increases its production of SUVs this year, it will have to spend more on advertising. D) If Barnes and Noble bookstore increases the number of titles it carries, it will have to reallocate shelf space to accommodate the new titles.
Markets fail when externalities are present
a. because all of the costs and benefits of producing a good are reflected in the market price b. because some of the costs and benefits of producing a good are not reflected in the market price c. only if they are negative; positive externalities are not market failures d. because profits are not maximized e. if the positive externalities are less than the negative externalities
Suppose that all countries eliminate their barriers to trade. The HeckscherOhlin model predicts that:
a. wages should become more equal throughout the world. b. wages should become more unequal throughout the world. c. the volume of international trade should fall. d. there should be increased migration of labor among countries.