Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market
This results in a deadweight loss of A) 0.
B) 5.5.
C) 12.5.
D) 25.
C
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China began pegging its currency, the yuan, to the dollar in 1994. Because the yuan was ________ at the pegged exchange rate, the level of Chinese exports remained ________ than they would have been if the exchange rate were allowed to float freely
A) overvalued; lower B) overvalued; higher C) undervalued; higher D) undervalued; lower
Refer to above Table 2-1. What is the level of Corporate Profits?
A) 260 B) 180 C) 270 D) 170
Excess volatility refers to
A) the unwillingness of financial analysts to consistently recommend the same stocks. B) the greater volatility of futures prices compared to the volatility of prices of the underlying assets. C) the tendency for stocks with high rates of returns also to have quite variable returns. D) the larger movements in market prices of stock than in their fundamental values.
The _________________ the opportunity cost of bad behavior, the _________________ likely one is to exhibit bad behavior
A) higher; less B) lower; more C) higher; more D) lower; less E) a and b