Refer to Scenario 16.2. Is the current distribution Pareto optimal?
A) Yes.
B) No, as Sam could trade Sally a piece of candy for a tee shirt and both people would be better off.
C) No, as Sam could trade Sally a tee shirt for a piece of candy and both people would be better off.
D) Without the prices of each commodity it is impossible to determine if this distribution is Pareto optimal.
A
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If the price of 1 peso in dollars is 10 cents, the price of 1 dollar in pesos is
a. 10 pesos. b. 1 peso. c. 10 centavos. d. 100 pesos.
What happens to the Canadian monetary base if there is an excess supply of 100 million euros in the foreign exchange market, which the Bank of Canada purchases?
a. The Canadian monetary base falls by 100 million euros worth of Canadian dollars. b. The Canadian monetary base falls. The amount depends on the size of the money multiplier c. The Canadian monetary base might fall or rise. d. The Canadian monetary base rises by 100 million euros worth of Canadian dollars. e. The Canadian monetary base rises. The amount depends on the size of the money multiplier.
Between World War II and the 1970s, three firms-General Motors, Chrysler, and Ford-produced and sold nearly all the output of the U.S. auto industry. These three firms had
A. colluded. B. an oligopoly. C. a pure monopoly. D. monopolistic competition.