How long does it take prices of securities to adjust so as to eliminate arbitrage profits?
A) seconds
B) hours
C) days
D) months
A
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Two countries, Rhodia and Rubium, have identical production functions of the form:
Y = A × K0.25 × H0.75 Both countries have the same amount of capital stock and use the same technology. However, the total efficiency units of labor available in Rhodia is higher than that in Rubium. Which of the following is likely to be true in this case? A) The poverty rate in Rhodia is likely to be higher than that in Rubium. B) The gross domestic product of Rhodia is higher than that in Rubium. C) The gross domestic product of Rubium is higher than that in Rhodia. D) The Human Development Index of Rhodia is lower than that of Rubium.
US are experiencing a productivity growth. When comparing to other countries with lower productivity growth, we expect to see
a. Its exchange rate appreciating b. Its exchange rate depreciating c. It has no effect on the US exchange rate d. None of the above
Unlike a perfectly competitive firm, a monopolist faces a demand curve that is
A) upward sloping. B) horizontal. C) vertical. D) downward sloping.
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
a. private property abuse. b. external costs. c. a negative externality. d. a positive externality.