Under a fixed exchange-rate system, in order to maintain the exchange rate:
a. governments must adopt a laissez-faire economic policy.
b. all trading partners must enjoy the same level of economic growth.
c. currencies must be inconvertible.
d. the imports of one country must equal the exports of its trading partner.
e. governments must intervene in the foreign exchange market.
e
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Assuming that transactions costs are sufficiently low, the Coase theorem results in the economic pie being maximized. What impact do legal constraints have on this prediction of the Coase theorem?
What will be an ideal response?
According to your textbook,
A) millions of people know how to make pencils, but only a few know how to use them. B) millions of people know how to make pencils, but nobody knows how to use them. C) no single person anywhere in the world knows how to make a pencil. D) no single person anywhere in the world knows how to use a pencil. E) none of the above.
Investing in risky assets in the hope of earning profits is called speculation
a. True b. False Indicate whether the statement is true or false
Collusion
a. is exactly the same thing as competition. b. involves cooperative actions by sellers at the expense of buyers. c. requires competitive actions by sellers to win customers from rival firms. d. can only be achieved in price-taker markets.