One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired.
B. prices tend to adjust more quickly downward than upward.
C. wages are sticky downward.
D. input prices increase with output prices.
Answer: C
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In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.
The act of buying a product at a low price in one market and reselling the product at a higher price in another market is called arbitrage
Indicate whether the statement is true or false
What is a repurchase agreement?
What will be an ideal response?
Hank's Honey is a bee farm out in the country. Kid Kare Nursery School is next door. Fleurette's fruit orchard is located on the other side of the school. Hank's bees, searching for nectar, buzz by the nursery school to feed in Fleurette's orchard and in doing so, pollinate the fruit. The school children, however, fear the bees. Who benefits in this story?
a. Hank and Fleurette b. Kid Kare c. Hank only d. Fleurette only e. no one benefits, but Kid Kare loses