Speculation serves the market in which of the following ways?
a. It helps smooth out price fluctuations.
b. It raises the price of certain goods.
c. It manufactures a demand for goods that would not ordinarily be found.
d. It allows risk takers the ability to make large amounts of economic rent.
a
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When there is a current account deficit, it is likely that
A) exports exceed imports for the country. B) the country is an exporter of capital. C) the capital account has a surplus. D) the country has a budget surplus.
If the sellers in a market are aware of their strategic interdependence, then
a. each firm bases its pricing and output decisions on the monopoly model b. each firm, when making pricing or output decisions, must consider the reactions of its competitors c. the firms have little incentive to collude in their pricing and output decisions d. the firms undertake little advertising because they cannot recoup the cost through higher prices e. no firm is able to earn above-normal profit in the long run
Figure 10-14
At which of the following points in would short-run equilibrium occur immediately following an adverse supply-side shock?
a.
F
b.
G
c.
H
d.
I
e.
J
Consumers who clip and redeem discount coupons:
A. exhibit more price elasticity of demand for a given product than consumers who do not clip and redeem coupons. B. cause total revenue to decrease for firms that issue coupons for their products. C. exhibit less price elasticity of demand for a given product than consumers who do not clip and redeem coupons. D. exhibit the same price elasticity of demand for a given product than consumers who do not clip and redeem coupons.