A transaction cost associated with spot trading is:
a. travel to and from the market.
b. shipping costs.
c. brokerage commissions.
d. the spread, which is earned mostly by large banks.
Answer: d. the spread, which is earned mostly by large banks.
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Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
A) that people do not realize that taxes have increased also. B) the interest rate on the debt will increase. C) people will forgo private consumption now as society substitutes government goods for private goods. D) people believe that they can consume the government provided goods and have future generations pay the bill.
The LRAC curve generally is
A) shaped as an upside-down U. B) U-shaped. C) upward sloping. D) downward sloping.
Describe how Mexico's development strategy changed from the 1950s to today and how that changed the production location decisions of firms
What will be an ideal response?
The pricing rule MR=MC hold for
a. All firms b. Single product firms c. Multiple product firms d. None of the above