If a firm wants to buy a piece of capital equipment, is this firm a demander or supplier in the financial market?
What will be an ideal response?
A financial market is where firms get the funds to buy capital. So, if the firm wants to buy a piece of capital equipment, the firm will be looking for funds to borrow. Hence the firm is a demander in the financial market.
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If a country experiences a relatively high inflation rate compared with other economies, then the demand for its currency will _________________.
a. increase b. stabilize c. flatten d. lessen
Suppose each good costs $5 per unit and Megan holds $40 . What is the real value of the money she holds?
a. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. b. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. c. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars. d. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars.
Why do monopolistically competitive firms fail to reach productive efficiency?
a. They fail to produce enough output to reach the highest cost. b. They produce too much output to reach the highest cost. c. They fail to produce enough output to reach the lowest cost. d. They produce too much output to reach the lowest cost.
Which of the following is an argument against free trade?
A) protecting infant industries B) protecting against dumping C) protecting domestic jobs D) all of the above