When the purchasing power of money is stable and predictable, this
A) increases transactions costs.
B) facilitates gains from specialization, investment, and trade.
C) encourages the use of bartering.
D) makes it risky for individuals and businesses to save and borrow.
B) facilitates gains from specialization, investment, and trade.
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The market where currencies may be bought and sold for delivery in a future period is known as
A) the forward exchange market. B) the spot exchange market. C) the purchasing power market. D) the futuristic exchange market.
A common theme in the discussions of the airline, soft drink, doughnut, and express delivery industries is that oligopolistic firms tend to compete:
A) strictly on the basis of price and nothing else. B) strictly on the basis of cost minimization. C) primarily on the basis of product differentiation and price. D) primarily by erecting barriers into the market.
Which of the following is a reason behind low standards of living in developing countries?
a. High human and physical capital per worker b. Low human and physical capital per worker c. Low birth rates d. High tax rates e. Low public expenditure
In a monopolistically competitive market: a. there are significant barriers to the entry of new sellers. b. firms sell differentiated products
c. firms face horizontal demand curves. d. there are a few producers selling standardized products.