If buyers expect the price of a good to fall in the near future, we would expect that to cause the current price and the quantity traded to increase as a result
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that there are two factors, capital and land, and that the United States is relatively capital abundant while Canada is relatively land abundant. According to the HO model,
A) Canadian landowners should support Canada-U.S. free trade. B) Canadian capital owners should oppose Canada-U.S. free trade. C) U.S. capital owners should support Canada-U.S. free trade. D) All of the above.
If there are no unexploited opportunities for individuals in a particular market, then one can conclude that:
A. government regulation has been successful. B. a socially optimal outcome has been achieved. C. the market is not in equilibrium. D. the market is in equilibrium.
Prove formally that the rationality axioms alone rule out the possibility of indifference curves crossing.
What will be an ideal response?
An investment option is profitable if:
A) its net present value is zero. B) its net present value is positive. C) its net present value is negative. D) its present value is negative