Markets can exist:
A. only if there are property rights.
B. only if there is perfect information.
C. with or without property rights.
D. only if all goods are private.
Answer: A
You might also like to view...
The U.S. government restricts the production of peanuts by limiting production licenses. By also prohibiting imports, the government maintains prices well above levels peanut farmers would obtain if supply were not restricted. This program has the same effect as a
A. price ceiling. B. price floor. C. opportunity cost. D. shortage. E. efficiency move.
Classical economists believed that
A. if saving exceeded investment, prices and interest rates would rise as business accumulated unwanted inventories. B. flexible prices and wages could not restore an economy to full employment if the interest rate were rigid. C. flexible interest rates, wages, and prices would assure full employment. D. voluntary unemployment reflected economic inefficiency.
Suppose a family member approaches you to borrow $2,000 for the down payment on an automobile. You have the cash available in a savings account that currently earns 5% annual interest. You and the family member consider the following repayment options:(i) Borrower repays $259 each year over the next ten years(ii) Borrower repays $300 each year over the next five years, plus a lump-sum payment of $895 in the fifth year.(iii) Borrower repays you $2,100 at the end of one year. For each of the options above, show that the present values of each option are approximately equal. Then, relate each of the options above to the four types of bonds, indicating which option is equivalent to which type of bond. Explain why.
What will be an ideal response?
When the unemployment rate is relatively high, we can conclude that:
What will be an ideal response?