In a world of certainty about future demand and supply, speculators cause price fluctuations across time to decrease.
Answer the following statement true (T) or false (F)
True
Rationale: When speculators can accurately predict future prices (because of certainty about future demand and supply), they will buy low when price is low and sell high when price is high -- thus decreasing price when demand and supply alone would otherwise cause prices to be high and increase price when demand and supply along would otherwise cause prices to be low.
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Consider the same setup with the curved final exam as in the previous question. Now suppose the students move sequentially. Which best describes the outcome in the subgame-perfect equilibrium?
a. Brainiacs study and Numbskulls party regardless of who moves first. b. Brainiacs party and Numbskulls study regardless of who moves first. c. The party moving first studies. d. The party moving first parties.
A cigar factory employs 20 workers and produces 1,000 cigars a day. The company reduces the workforce to 19 workers and produces 912 cigars a day. The 20th worker:
A. had a marginal product of 88 cigars. B. caused average product to fall. C. must have had a lower marginal product than the 19th worker. D. All of these are true.
Define the following terms and explain their importance to the study of economics. a. marginal cost b. marginal revenue c. short-run equilibrium d. supply curve of the firm e. economic profit
What will be an ideal response?
GDP excludes important factors that affect people's well-being, such as the value of:
A. leisure time. B. goods produced domestically but sold to foreigners. C. government purchases of goods and services. D. services purchased by households.