Joseph Schumpeter said that profits were a reward for ________; Frank Knight said that profits were a reward for __________.
Fill in the blank(s) with the appropriate word(s).
innovation; risk taking
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By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from $1.40/£ to $1.60/£, the U.S. tradable basket from $2,100 to $2,200 and the British tradable basket from £1,500 to £1,600?
a. The real exchange rate rises by 16.35%. b. The real exchange rate falls by 3.1% c. The real exchange rate rises by 3.1% d. The real exchange rate falls by 10.8% e. The real exchange rate falls by 12.5%
According to the text, standard economic models, based on self-interest where calculations appear to be made for every decision,
A. describe the motivations of people but fail as useful predictors of behavior. B. are often criticized by other social sciences that use less formal modeling. C. are accurate descriptions of human behavior and the motivations that drive it. D. provide good predictions of behavior even if they don't describe what actually happens.
For a monopolistic competitor:
A. P = MC in long-run equilibrium. B. P = MR in long-run equilibrium. C. P > ATC in long-run equilibrium. D. P = ATC in long-run equilibrium.
If Americans demand goods produced in Mexico, it leads to a demand for Mexican pesos and a supply of U.S. dollars on the foreign exchange market.
Answer the following statement true (T) or false (F)