The ________ states that exchange rates between any two currencies will adjust to reflect changes in the price levels of the two countries
A) theory of purchasing power parity
B) law of one price
C) theory of money neutrality
D) quantity theory of money
A
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An increase in the rent that a firm pays for its factory does not increase ______
A. total cost B. fixed cost C. marginal cost D. average fixed cost
When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are
a. economies of scale b. diseconomies of scale c. constant returns to scale d. diminishing returns e. some fixed factors of production
Perfectly competitive markets are efficient because
A) they always reach equilibrium. B) firms in the market are price takers. C) the cost to society for producing the goods is exactly equal to the value that society places on the good. D) the long run equilibrium assures that the prices of resources will not increase.
A bond is a
A. Ownership share in a private company. B. License to use the Fed's discount window. C. Certification that a bank has met the Fed's reserve requirement. D. Promise to repay borrowed funds.