A merchandiser decides to sell corn to a Blair, NE location and gain $0.17/bu on the trade (after transport). He/she can obtain the corn for this opportunity at a net cost of $0.10/bu. The merchandiser who made these transactions, is taking advantage of an opportunity for _________:
a. Storage opportunities
b. Monopoly gains
c. Monopsony gains
d. Arbitrage
d. Arbitrage
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Everything else held constant, an autonomous monetary policy easing ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
Assuming that the SRAS curve is upward sloping, which of the following statements represents a correct and sequentially accurate economic explanation?
A) The demand for bonds falls, the price of bonds falls, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. B) The demand for bonds rises, the price of bonds rises, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. C) The supply of bonds rises, the price of bonds falls, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP decreases. D) The supply of bonds falls, the price of bonds rises, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP increases.
Using the typical estimate of the sacrifice ratio, how much output would be lost in reducing inflation from 3% to 1%?
a. 5% b. 10% c. 15% d. 20%
Which of the following provides the clearest evidence that a business firm is using resources productively?
a. economic profit b. economic loss c. high wages paid to workers d. low wages paid to workers