The primary economic role of financial markets is to
A. Provide the federal government with a source of loanable funds when it has a budget deficit.
B. Gain profits for investors.
C. Earn dividends for shareholders.
D. Allocate resources to profitable businesses and away from businesses with losses.
Answer: D
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Gary has to decide between attending a two-day art workshop and a four-day art workshop. If he evaluates only the change in net benefit when he switches between the two options, he is using the technique of:
A) ordinal analysis. B) comparative statics. C) optimization in levels. D) optimization in differences.
Average variable cost can be calculated using any of the formulas below except
A) ?(TC - FC)/?Q. B) TVC/Q. C) (TC - FC)/Q. D) (TC/Q) - AFC.
Which of the following is not in the index of leading economic indicators?
A) Average workweek B) Initial unemployment claims C) Building permits D) Producer price index
The key to reaching a Pareto optimum through mutually beneficial exchange _____
a. is to remove barriers to international trade b. is to establish property rights for valuable resources c. is to provide start-up capital to fledgling entrepreneurs d. is to encourage people to use online auction services