When will speculators' actions raise social welfare?
a. Always.
b. When they drive down market prices.
c. When their expectations prove to be correct.
d. When they are not risk averse.
c. When their expectations prove to be correct.
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How are the fundamental economic decisions determined in Canada?
A) These decisions are made by the country's elders who have had much experience in answering these questions. B) The United Nations decides because Canada is a developing economy. C) Individuals, firms, and the government interact in a market to make these economic decisions. D) The government decides because Canada is a centrally planned economy.
Asymmetric information is
A) when a market failure occurs. B) an externality. C) when the producer has information on the product that the consumer lacks. D) the regulatory price for a natural monopoly.
Which of the following periods was not characterized by inflation in the U.S. economic history?
a. 1917–1920 b. 1929–1933 c. 1947 d. 1978–1980 e. 1980–1989
Who owns the Fed?
a. the federal government b. the 50 state governments c. the District Federal Reserve Banks d. it has no ownership, which is why it is called independent e. member banks