Which of the following correctly describes a foreign exchange market?
a. A place where foreign goods are bought and sold in any country
b. A market in which foreign tourists can buy domestic goods
c. A global market in which people exchange one currency for another
d. A place where contracts to deliver agricultural products across countries are exchanged
e. A market where the central banks of different countries exchange government bonds
c
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One way to overcome the problem of the commons is to
A) assign property rights so that someone owns the resource. B) take away property rights so that no one owns the resource. C) leave the market alone because the market will reach an equilibrium in which the efficient amount of the resource is used. D) None of the above answers is correct.
How does Adam Smith's idea of the "invisible hand" apply to the various parts, made by many different manufacturers in many different countries, that are used by Apple to produce an iPad?
What will be an ideal response?
Assume the market for cage-free eggs is perfectly competitive. All else equal, as more farmers choose to produce and sell cage-free eggs, what is likely to happen to the equilibrium price of the eggs and profits of these farmers in the long run?
A) The equilibrium price is likely to remain unchanged and profits are likely to increase. B) The equilibrium price is likely to decrease and profits are likely to decrease. C) The equilibrium price is likely to increase and profits are likely to increase. D) The equilibrium price is likely to increase and profits are likely to remain unchanged.
Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be
A) W1iL4O. B) W2aL3O. C) W3bL2O. D) W3bhW1.