Which of the following statements about speculators is not true?
a. Speculators use the forward market extensively.
b. Speculators provide the foreign exchange market with liquidity
c. Speculators make foreign exchange markets more efficient.
d. Speculators cannot be completely shut out of the forward market, although the forward market is not intended for speculators.
e. Only major currencies have very liquid forward markets
.A
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A major technological advance would be represented on a production possibilities curve by a(n):
a. movement off the production possibilities curve toward a point outside the curve. b. movement toward the curve from a point inside the curve. c. outward shift of the entire curve. d. movement to the left along the curve to a higher point.
The demand for a commodity is said to perfectly inelastic when:
a. a prominent change in the price level leaves the quantity demanded totally unchanged. b. a small change in the price level affects the quantity demanded to a large extent. c. a change in the price level has an equal impact on the quantity demanded. d. a change in the price level has a negative impact on the quantity demanded.
As a group, oligopolists earn the highest profit when they
a. achieve a Nash equilibrium. b. produce a total quantity of output that falls short of the Nash-equilibrium total quantity. c. produce a total quantity of output that exceeds the Nash-equilibrium total quantity. d. charge a price that falls short of the Nash-equilibrium price.
One consequence of unemployment is that:
A. the time and skills of the unemployed are not being put to use. B. it can create uncertainty about the future. C. some productive potential of the economy is being wasted. D. All of these are consequences of unemployment.