We all use the services of speculators as information in reaching our own economic decisions
A) because speculators are aggressive about marketing the information they produce.
B) because we all use prices, which are set by bids and offers based on predictions of the future.
C) if we buy or sell commodities through an organized exchange.
D) if we play the stock market.
B
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A typical supply curve has
A. slope equal to zero. B. slope equal to infinity. C. negative slope. D. positive slope. E. constant slope.
If a bank has excess reserves of $4,000 and demand deposit liabilities of $100,000, and if the reserve requirement is 15 percent, then the bank has actual reserves of
A) $17,000. B) $19,000. C) $24,000. D) $29,000.
Suppose an instructor takes off points for students coming late to class. He then finds that the number of late arrivals has risen. This could have happened because the:
A. shadow price of late arrivals rose. B. shadow price of late arrivals declined. C. money price of late arrivals declined. D. teacher did not fine the students monetarily for arriving late.
A monopoly is best defined as a firm that
A) produces a good or service for which no close substitute exists and which is protected by a barrier that prevents other firms from selling that good or service. B) purchases its resources from only one supplier because of a barrier preventing it from buying from other suppliers. C) produces a good or service for which no close substitute exists and that sells all its output to one buyer because there is barrier preventing other buyers from purchasing the good or service. D) cannot control the price it sets for its good or service because there is barrier that prevents the firm from changing the price.