Under competitive conditions, the relative price of a finite resource would be expected to:
a. rise at an increasing rate.
b. rise at a rate equal to the real interest rate.
c. rise at a rate equal to the nominal interest rate.
d. rise at a rate determined by demand conditions.
b
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The use of "most-favored-customer" clauses is an example of
A) incenting members to maintain the cartel, because if they lower the price for one customer, they have to lower it for previous customers as well. B) incenting members to maintain the cartel, because if they raise the price for one customer, they have to raise it for previous customers as well. C) giving customers special perks for purchasing goods from members of the cartel. D) selling higher quality goods and services to favorite customers.
For a country to be a price taker in the global market for some good:
A. there must be many buyers all buying a large amount from the market. B. the quantity it produces and consumes must be very small relative to the total amount of that good bought and sold worldwide. C. there must be many sellers all supplying a very significant amount to the market. D. the quantity it produces and consumes must be very large relative to the total amount of that good bought and sold worldwide.
When analyzing the complete model, which can predict short-run and long-run changes in the exchange rate, one must:
a. start with short-run changes and move toward long-run changes, and thereby determine expectations. b. use only the long-run model because the short-run model is largely irrelevant. c. start with the long-run equilibrium positions where expectations of future exchange rates can be determined, and use those expectations to feed into the short-run model. d. use the short-run model only, because the long run is only a theoretical concept.
What is workfare?
(A) A state-by-state grant program of aid to the elderly. (B) A program that requires work in exchange for assistance. (C) Welfare that is limited to preschool-age children. (D) An early poverty program from the 1950s.