Which of the following is an accurate definition of a market?
a. a specific place where stocks are bought and sold
b. a specific place where companies exchange goods
c. a process of buyers and sellers exchanging goods and services
d. a process of companies setting their preferred price
c. a process of buyers and sellers exchanging goods and services
You might also like to view...
One common effect of rent ceilings in big cities is
A) that landlords build more apartments. B) that landlords charge "key money," high payments charged to new tenants for new locks and keys. C) to equalize the quantity of apartments demanded and the quantity supplied in neighborhoods. D) to reduce the search activity by those seeking shelter.
Why is monetary policy more effective in an open economy than in a closed economy?
a. Trade deficits affect exchange rates, which can offset adverse interest rate effects. b. Borrowers can choose to use foreign capital, so that interest rate effects are stronger than expected. c. Interest rate changes affect exchange rates, so that capital flows reinforce the effect of monetary policy. d. Banks can choose to lend to foreigners, so that interest rate effects are essentially nullified.
According to the textbook, the private provision of television programming may not be socially optimal because:
A. the government strictly regulates the market. B. consumers don't pay for broadcast television. C. programs are chosen on the basis of audience size rather than the value to the audience. D. most consumers don't like watching television commercials.
A promise of a $100 payment to be received one year from today is:
A. equally valuable as a payment received today if the interest rate is zero. B. less valuable than receiving the payment two years from now. C. more valuable than receiving the payment today. D. not enough information is provided to answer the question.