What do you expect would be the effects of 9/11 on the size of the Eurocurrency markets?
What will be an ideal response?
Will increase due to fear that foreign deposits in the U.S. will be frozen unless coordinated efforts by all countries.
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A major factor contributing to the slow growth rate of less-developed economies is
A) the lack of well-defined and enforceable property rights. B) the lack of workers. C) the lack of natural resources. D) the high rate of illiteracy.
A dominated strategy
A) exists when one firm is weaker than another. B) only occurs in a mixed strategy scenario. C) is one that is never used by a rational actor. D) is a characteristic of games with multiple Nash equilibria.
Why is the price elasticity of supply greater if there is more time for adjustment to an increase in the price of an item?
What will be an ideal response?
Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue product of the last worker hired must be
a. $1 b. $1.50 c. $4 d. $5 e. $20