The market line must
a. pass through the risk-free asset.
b. be linear.
c. be tangent to the efficient set.
d. all of the above.
d. all of the above.
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Which of the following statements is true?
A) In the long run, a firm cannot vary any of its inputs. B) In the long run, a firm can vary all its inputs. C) In the short run, a firm cannot vary any of its inputs. D) In the short run, a firm can vary all its inputs.
The law of one price (LOOP) indicates that:
a. Nominal interest rates in countries should be identical because if they were not, arbitragers could make risk-free profits. b. The price of a good in one country should be equal to the exchange-rate-adjusted price of the same product in another country. c. The quantity produced of a good in one country should be equal to the exchange-rate-adjusted quantity produced of the same product in another country. d. The nominal wage rate in one country should be equal to the exchange-rate-adjusted wage of the average laborer in another country. e. All the above.
The economic way of thinking indicates that personal benefits and costs influence the actions of
What will be an ideal response?
One reason why gold and silver have served as money is that they
A. are easy to produce. B. are easy to duplicate. C. are durable. D. All of these responses are correct.