How do you determine is a foreign exchange market is efficient?
A) See if the market rates adjust quickly to new and relevant information.
B) See if systematic profit opportunities are quickly eliminated.
C) See if forward rates are equal to expected future spot rates.
D) All of the above should be true if a foreign exchange market is efficient.
D
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Determine if the following statements pertain to optimization by levels or optimization by differences
a. John is attempting to decide on a movie. He determines that the newest Batman movie provides him with $10 more of a benefit than the newest Spiderman movie. He adds to his net benefit by always buying a large popcorn and a large drink. b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is $400, and the net benefit for the same trip flying on a one-stop American Airlines flight is $200 . c. Nikki decided to take the first available parking space as she entered the student lot. She felt that the first available space had a $5 premium on all other possible spaces since she did not want to risk being late for her exam. d. Reagan determined that the net benefit of taking the combination of two online courses and traditional lecture course was $100 . The same three courses online gave her a net benefit of $80; and all three in a lecture-based format gave her a net benefit of $10 .
A computer manufacturer sells 1,000 units per month at $500 each. A price cut to $400 is being considered. His marginal cost is constant at $300 per unit. To maintain profits, quantity sold must increase to at least
A. 1,500 B. 2,000 C. 2,500 D. 3,000
An economist estimates that 0.67 is the price elasticity of demand for disposable diapers. This suggests that disposable diaper producers could
a. advertise more to raise the price elasticity of demand b. encourage more parents to use cloth diapers c. lower the price of disposable diapers to raise more revenue d. raise the price of disposable diapers to raise more revenue e. increase revenue by lowering price elasticity of demand
Libertarians believe that
a. policy should aim for an income distribution that maximizes total happiness of all members of society. b. large income disparities are likely to become a threat to political liberty. c. the government should aim to improve the well-being of the worst off person in society. d. people should be free to engage in voluntary transactions, even if large income disparities result.