The actions of speculators
a. help smooth out price fluctuations.
b. serve no useful economic purpose.
c. make investment much more risky.
d. cause severe shortages of some commodities.
a
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The nominal exchange rate:
A. expresses the value of goods in one country in terms of the same goods in another country. B. is the stated rate at which one country's currency can be traded for another country's goods and services. C. is the stated rate at which one country's currency can be traded for another country's currency. D. expresses the value of goods in one country in terms of another country's currency.
The maximin criterion is attributed to which political philosophy?
a. utilitarianism b. liberalism c. libertarianism d. repubicanism
An industry utilizes capital and two types of labor. Unskilled labor is a substitute for capital while the skilled labor is complementary to capital. An increase in the price of capital will
A) cause the demand for labor to increase, raising wages of both skilled and unskilled labor. B) cause the wage of unskilled labor to rise relative to the price of skilled labor. C) induce the firms in the industry to cut back on all levels—capital, unskilled and skilled labor. D) cause the demand for skilled labor to rise and the demand for unskilled labor to fall.
If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________
A) equal to its average cost B) higher than its average cost C) equal to its marginal cost D) lower than its marginal cost