When exchange rates are not in alignment, traders see opportunities for ___ , which move the rates ___ equilibrium.
a. speculation; away from
b. arbitrage; toward
c. investments; away from
d. liquidation; toward
Ans: b. arbitrage; toward
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The equation is the
A) average propensity to consume. B) average propensity to save. C) marginal propensity to consume. D) marginal propensity to save.
What determines the perfect competitor's supply curve? How is the industry supply curve found?
What will be an ideal response?
Human capital represents: a. the equipment that labor uses on-the-job to improve labor productivity
b. the ratio of capital to labor. c. the education, skill, and training embodied in workers. d. the technology developed by humans that is embodied in equipment. e. the social institutions created by people which promote the accumulation of equipment for production.
Figure 2-7
Which of the following could explain the shift in the production possibilities frontier shown in from AC to AB?
a.
technical improvements in both petroleum and clothing production
b.
a productive improvement in clothing production that has no effect on petroleum production
c.
a decrease in the size of the labor force that can produce either petroleum products or clothing
d.
major oil reserves in Alaska are declared off-limits to producers in order to protect the environment
e.
major oil reserves are discovered off the coast of Africa