Examining the conditions that could lead to inflation in an economy is an example of a microeconomics topic
Indicate whether the statement is true or false
FALSE
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Private solutions to externalities are most effective if ________
A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities
Effective price discrimination will enable a perfectly competitive firm to earn positive economic profits in both the short run and the long run
Indicate whether the statement is true or false
Which of the following examples illustrates an oligopoly market?
a. a farmers' market with many individuals selling sweet corn and tomatoes b. a city whose electrical service is provided by one electric co-operative c. a city with two firms who are licensed to sell school uniforms for the local schools d. a city with many independently-owned hair styling salons
The nominal exchange rate is the:
A. rate at which two currencies can be traded for each other. B. quantity of foreign currency assets held by a government for the purpose of purchasing the domestic currency in the foreign exchange market. C. price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency. D. market on which currencies of various nations are traded for one another.