An investor can acquire shares of stock in Acme Corporation either by purchasing shares on the stock market or by purchasing a bond that is convertible into shares of Acme stock
After careful study, the investor discovers that she can profit by purchasing the bond, converting it to shares of stock, and selling the stock. This practice is called: A) selling short.
B) arbitrage.
C) profiteering.
D) dumping.
E) none of the above
B
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Data on exports and imports for the United States over the period from 1890 to 2008 show that
A) the United States had large trade deficits throughout this entire period. B) the United States had large trade surpluses throughout this entire period. C) the percentage of total output exported by U.S. firms fell dramatically during World War I and World War II. D) a higher percentage of U.S. goods was exported in recent years than in earlier years.
The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:
a. demand curves tend to become steeper over time. b. economists take the absolute value of long-run price elasticities but not of short-run elasticities. c. people have more time to find substitute goods. d. incomes tend to rise over time. e. supply curves change over time.
Suppose there are only two countries in the world, Mexico and the United States. In the foreign exchange market, it follows that the
A) demand for pesos is linked to the demand for dollars. B) demand for pesos is linked to the supply of pesos. C) supply of pesos is linked to the demand for dollars D) supply of pesos is linked to the supply of dollars. E) none of the above
Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A. the economy has very few resources. B. the economy's resources are being used inefficiently. C. the economy operates as an efficient market. D. the economy has very poor technology.