An unexpected drop in the LEI should send bond prices __________ and stock prices __________
A) up; up
B) up; down
C) down; up
D) down; down
B
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Refer to the game in Scenario 13.6. What will occur if ERS Co plays a maximin strategy?
A) -$100, -$1 B) $2, -$0.5 C) $1, -$1 D) -$0.5, -$0.5 E) There is a 0.25 chance of each outcome in that case.
What are the conditions that an exchange must satisfy in order to make two individuals participate in it?
If the marginal benefit were greater than the cost of a good:
A. producers should decrease production. B. consumers could increase their utility by buying more. C. consumers could increase their utility by buying less. D. social net benefit would be maximized.
Refer to the information provided in Figure 3.18 below to answer the question(s) that follow.
Figure 3.18Refer to Figure 3.18 The market is initially in equilibrium at Point B. If demand shifts from D2 to D1 and the price of burritos remains constant at $4.00, there will be
A. an excess supply of 100 million pounds of burritos. B. an excess demand of 200 million pounds of burritos. C. an excess supply of 200 million pounds of burritos. D. an excess demand of 100 million pounds of burritos.