Sally is shopping for textbooks at the beginning of the semester. What is one reason she might decide to not purchase a textbook?
A) Her expected producer surplus is positive.
B) Her expected consumer surplus is negative.
C) Her expected consumer surplus is positive.
D) Her expected profits are positive.
B
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If you are indifferent between investing $1000 for one year in a U.S. Treasury security that has an interest rate of 5% or in a Canadian government security that has an interest rate of 8%, you must be expecting
A) the inflation rate in the United States will be higher than the inflation rate in Canada during the year. B) the U.S. dollar to depreciate against the Canadian dollar by 3% during the year. C) the U.S. dollar to appreciate against the Canadian dollar by 3% during the year. D) productivity growth in Canada to be greater than productivity growth in the United States during the year.
The winners curse is more often associated with;
a. oral auctions b. second-price auctions c. first-price sealed bid auctions d. common value auctions
Elasticity measures
a. whether a price increase causes quantity demanded to increase or decrease b. the strength of an economy's tendency to recover from recession c. the responsiveness of decision makers to changes in prices, income, or other variables d. the profitability of investment in an industry e. the long-run flexibility of prices in the economy
A logical starting point from which the study of international trade begins is
a. the recognition that not all markets are competitive. b. the recognition that government intervention in markets sometimes enhances the economic welfare of the society. c. the principle of absolute advantage. d. the principle of comparative advantage.