Which statement best defines efficiency?
a. when it becomes possible to benefit at least one party without imposing costs on others
b. when it is impossible to improve the situation of one party without imposing a cost on another
c. the amount that a seller is paid for a good minus the seller’s actual cost
d. the amount that individuals would have been willing to pay, minus the amount that they actually paid
b. when it is impossible to improve the situation of one party without imposing a cost on another
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In the Keynesian liquidity preference framework, a rise in the price level causes the demand for money to ________ and the demand curve to shift to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
Omitted variables
A) can cause hypothesis tests to be unreliable. B) require multiple regression analyses to find. C) are usually those with t-statistics less than the critical value. D) are usually outside the confidence interval.
Changes in the ______________ rate of return will shift demand and supply for a currency.
a. historical b. expected c. actual d. immediate
Black markets that operate outside the legal system are often characterized by
a. low profits for suppliers. b. lower opportunity costs for suppliers and buyers. c. decreased prices. d. the use of violence as a means of settling disputes.