To arbitrage a price difference between two markets, you should:
A) sell in the low-price market and buy in the high-price market.
B) buy in the low-price market and sell in the high-price market.
C) sell in both markets to capture a lower average "market price."
D) none of the above
B
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If a bond was to pay off one year from now for $440 and the interest rate is 10 percent, what is the price of the bond?
A) $44 B) $400 C) $440 D) $484
Consider the production possibilities frontier displayed in the figure shown. Which of the following combinations could not be produced?
A. (20 watermelons, 400 bushels of apples)
B. (15 watermelons, 100 bushels of apples)
C. (10 watermelons, 150 bushels of apples)
D. (0 watermelons, 400 bushels of apples)
When nations trade the result would most likely be:
A. increase in total production, which can benefit every nation involved. B. increase in total production, which would benefit only the wealthier nation. C. decrease in total production across nations but increases it for some. D. decrease in total production across all nations but benefits every nationbecause they are individually
Isoquants that are downward-sloping straight lines imply that the inputs
A) are perfect substitutes. B) are imperfect substitutes. C) cannot be used together. D) must be used together in a certain proportion.