The above figure depicts the Edgeworth box for two individuals, Al and Bruce. If the endowment is at point a, and trade is possible, which of the following points are possible equilibria?
A) a and b
B) a and c
C) b and d
D) c and d
D
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Explain what the phrase "price rationing" means
What will be an ideal response?
A perfect market would have all but which of the following characteristics?
A) Infinitely divisible securities B) Asymmetric information C) Buyers and sellers of financial instruments would know the true quality of what they are buying and selling. D) Buyers and sellers could transact with each other without cost (no transactions costs).
A current account deficit exists when
(a) Government revenue exceeds spending (b) Government spending exceeds revenue (c) Imports exceed exports (d) Exports exceed imports
Product demand is more elastic the longer the time period under consideration.
Answer the following statement true (T) or false (F)