For a nonrenewable natural resource, such as oil, the equilibrium price ________ the market fundamentals price
A) is always the same as
B) can be greater than but not less than
C) can be less than but not greater than
D) can be less than, greater than, or equal to
D
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A government is running a budget surplus if:
A. government revenue is less than government spending. B. government revenue exceeds government spending. C. imports exceed exports. D. exports exceed imports.
Suppose that workers in A can produce 1 unit of S in 3 hours and 1 unit of T in 9 hours. Suppose that the relative price of S in B is 2. Graph the PPF for country A. Indicate the exact slope of the PPF. Show how the autarky equilibrium is determined
Illustrate a hypothetical international trade equilibrium, including production and consumption points, and trade volumes for a given (your assumption-be explicit) but permissible value of the international terms of trade.
Suppose you are a manager for a company that produces grape jelly. Which of the following is the best way for you to reduce your risk?
A) acquire a derivative that increases in value if grape prices increase B) acquire a derivative that increases in value if grape jelly prices increase C) sell a derivative that increases in value if grape prices increase D) sell a derivative that increases in value if grape jelly prices increase
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more positive (or less negative). b. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). c. The real risk-free interest rate rises, and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). e. There is not enough information to determine what happens to these two macroeconomic variables.