In the days before electronic market transactions, if only a few people had ready access to exchange-rate information, such as knowing the latest on euros per dollar or dollars per Mexican peso, then there was the possibility for
a. market forces to create fixed exchanged rates
b. government fixing exchange rates
c. arbitrage
d. exchange rate controls
e. unintentional trade deficits
C
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Suppose China decides to sell a vast majority of their large holdings of U.S. Treasury bonds. If you are thinking of refinancing your house, how would China's action affect your decision to refinance?
A) You would want to wait to refinance as interest rates should rise. B) China's actions should not affect your decision to refinance in any way. C) You would want to refinance as soon as possible as interest rates should rise. D) You would want to wait to refinance as interest rates should fall.
A linear specification, Q = aK + bL, is not appropriate for estimating a production function because
A. the firm could produce positive levels of output at zero cost. B. the marginal products of the inputs are assumed constant. C. it does not allow the firm to substitute capital for labor. D. both b and c E. all of the above
Which is a teenager most likely to have demand for?
a. new sports car b. luxury condominium b. athletic shoes d. building blocks
When comparing perfect competition and monopoly, a major assumption made is that
A. consumers only care about the price of the good and not whether the seller is a monopoly or not. B. the costs of production are the same under monopoly as under perfect competition. C. the monopolist can make an above normal rate of return. D. the monopolist faces a downward sloping demand curve.