An efficient market is one in which
a. no rents are created.
b. past prices can be used to predict the levels of future prices.
c. the principals can fully monitor the actions of their agents.
d. the price fully reflects all available information.
d. the price fully reflects all available information.
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Which of the following statements best describes possibilities for trade?
a. Many larger national economies around the world, in regions like North America and Western Europe, have much more limited possibilities for trade inside their countries or their immediate regions. b. Many smaller national economies around the world, in regions like Latin America, Africa, the Middle East, and Asia, have much more limited possibilities for trade inside their countries or their immediate regions. c. Many medium national economies around the world, in regions like Latin America, Africa, the Middle East, and Asia, have much more limited possibilities for trade inside their countries or their immediate regions. d. Many smaller national economies around the world, in regions like Eastern Europe, have much more limited possibilities for trade inside their countries or their immediate regions.
E. Carey Brown, an MIT economist, studied government deficits during the Great Depression and found that even though actual deficits were large, the structural deficit changed very little. Which of the following statements is consistent with this finding?
A. Fiscal policy did not work during the Depression. B. Fiscal policy made the Depression worse. C. Fiscal policy was not tried during the Depression. D. Fiscal policy improved the economy during the Depression.
Consumer surplus is
A. the total difference between the total amount that consumers would have been willing to pay for an item and the total amount that they actually pay. B. the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. C. the total difference between the total amount that consumers actually pay for an item and the total amount that they would have been willing to pay. D. the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
Which of the following causes the unemployment rate to understate the true extent of joblessness?
A) Many full time workers really want to be part time workers. B) A drug dealer reports herself as unemployed. C) Persons who collect unemployment benefits report themselves to be searching for a job. D) Discouraged workers are counted as unemployed. E) Discouraged workers are not counted as unemployed.