Harry attended a baseball card show in New York City where he bought a number of rookie cards of Pittsburgh Pirates baseball players from the 1950s and 1960s
Harry then sold the cards in Pittsburgh, Harry's hometown, where he knew the cards sold for higher prices. The profits Harry earned from these transactions are called
A) arbitrage profits. B) implicit profits.
C) normal profits. D) accounting profits.
A
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Refer to Table 7-6. With trade, what is the total gain in sword production?
A) 40 B) 60 C) 100 D) 200
The theory that there are no predictable trends in securities prices that can be used to "get rich quick" is the
A) dartboard theory. B) random walk theory. C) Wall Street theory. D) inefficient market hypothesis.
Firms in perfectly competitive markets who wish to maximize profits should:
A. keep producing more as long as marginal cost is less than marginal revenue. B. produce less as long as marginal cost is greater than marginal revenue. C. produce where marginal cost and marginal revenue are equal. D. All of these are true.
Social disapproval is likely to be more effective:
A. in a small town than a large city. B. than taxation. C. in solving a free rider problem than a tragedy of the commons problem. D. when community members have only spurious relationships with others in the area.