The process by which identical products that are tradeable converge to the same price is called
A) arbitrage.
B) hedging.
C) speculation.
D) risk aversion.
A
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For firms that sell one product in a perfectly competitive market, marginal revenue is always:
A. greater than market price. B. less than market price. C. the same as market price. D. equal to average total cost.
If the firms in a monopolistically competitive market are earning short-run economic profits, then
a. each existing firm will increase output in the long run as its marginal revenue curve shifts rightward b. each firm will experience an increase in the demand for its output in the long run c. each firm's profit will drop to normal in the long run as its demand curve shifts leftward due to entry of new firms d. barriers to entry will enable them to earn economic profits in the long run e. decreased demand for a key input will reduce that input's price in the long run and lower each firm's average total cost curve
The Federal Reserve System is the
A) insurance agency the insures deposits. B) central bank of the United States. C) law enforcement agency that tracks counterfeit money. D) federal government agency that undertakes deregulation for depository institutions.
The following data are estimates describing Ireland's economy in 2006 and 2007 (in millions of euros, in constant prices):
2006 2007 Consumption 84,000 89,000 Government expenditure 24,000 26,000 Investment 48,000 48,000 Exports 142,000 151,000 Imports 123,000 128,000 Subsidies 1,800 1,900 Taxes 500 500 Which of the following is TRUE regarding Ireland's economy? A) The change in GDP from 2006 to 2007 represented a peak in the business cycle. B) GDP decreased from 2006 to 2007. C) Net exports decreased from 2006 to 2007. D) Consumption was 48 percent of Ireland's GDP in 2007.