Which of the following statements is true?
a. In both black markets and legal markets, supply and demand determine price.
b. The quality of products sold in black markets and legal markets are similar.
c. The price of products in black markets tends to be the same as those in legal markets for otherwise identical products.
d. The rate of violence is similar in black markets and legal markets.
A
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Which of the following Fed actions would increase the level of total bank reserves?
a. buying securities from individuals or businesses b. selling securities to commercial banks c. reducing reserve requirements d. raising the discount rate
Exchange rates affect:
I. international trade flows. II. international investment flows. III. corporate earnings. a. I b. II and III c. I and II d. I, II, and III
Which of the following statements is correct?
A. If the profit-maximizing rule is fulfilled, it necessarily follows that the cost-minimization rule is being fulfilled. B. The profit-maximizing and the cost-minimizing rules are such that the fulfilling of one has no bearing on the fulfilling of the other. C. If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not be fulfilled. D. If the cost-minimization rule is fulfilled, it necessarily follows that the profit-maximizing rule is being fulfilled.
Interindustry trade refers to
A) international trade in products made within the same industry. B) domestic trade in products made within the same industry. C) international trade in products made across different industries. D) the exchange of similar items that are differentiated.