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).
B
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In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2
5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007? A) €445,000,000 B) €528,000,000 C) €440,000,000 D) €375,000,000
Refer to the table above. For trade to occur along the lines of comparative advantage, wages in A relative to wages in B (measured in the same currency)
A) must be at least twice but less than 3 times as great. B) must be less than three times as small. C) must be greater than $2 but less than $3. D) Need more information to answer.
If Y = $200 billion, c = 0.75, autonomous consumption = $10 billion, and T = $20 billion, induced saving is
A) $25 billion. B) $50 billion. C) $75 billion. D) $150 billion.
If the price of a product is $10 per unit and the variable cost per unit is $5, the firm is making a profit.
Answer the following statement true (T) or false (F)