Other things being equal, an increase in the rate of interest causes a(n):
a. upward movement along the demand for money curve.
b. downward movement along the demand for money curve.
c. rightward shift of the demand for money curve.
d. leftward shift of the demand for money curve.
a
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A change that decreases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and ________ the profit-maximizing quantity to hold in inventory.
A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
The resource based perspective indicates that firms exhibit different performances within the same industry because
a. Some firms have better resources than others b. Some firms have organizational structures that can be duplicated c. Some firms sell goods that have a more elastic demand d. Some firms sell goods that have a perfectly elastic demand
Putting money into mental categories can:
A. cause people to take risks they wouldn't otherwise take. B. help people organize their expenditures. C. cause irrational behavior. D. All of these are true.
Under the gold standard system, if the par exchange rate is $1 = 2 pounds, but the market exchange rate in the United Kingdom is $1 = 1 pound, then a person interested in arbitrage would:
A) buy dollars in the United Kingdom to be shipped to the United States and exchanged for a larger quantity of gold. B) find that it is not possible to engage in arbitrage. C) convert dollars into pounds in the United States and sell it for gold in the United Kingdom. D) lose money by trying to exploit any price difference.