High transaction costs:
A. make spot exchange an efficient way to obtain inputs.
B. may be the result of downward-sloping demand.
C. may be a result of buyer opportunism.
D. occur when specialized investment is not important.
Answer: C
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An economy's investment demand curve shows the inverse relationship between the quantity of investment demanded and the market interest rate, other things held constant
a. True b. False Indicate whether the statement is true or false
An initial injection of money into the banking system will create new money supply through a sequence of excess reserves being transformed into loans. New money creation eventually ends because required reserves shrink loanable excess reserves in each round of new money creation
Indicate whether the statement is true or false
Where are coins manufactured?
(A) Federal Reserve Banks (B) Bank holding companies (C) United States Mint (D) Bureau of Engraving
As the firm in the above diagram expands from plant size #1 to plant size #3, it experiences:
A. economies of scale. B. diseconomies of scale. C. constant costs. D. diminishing returns.