Whether exchange is between individuals, firms, or countries, voluntary trade occurs because:
a. only one party is made better off.
b. both parties are made better off.
c. financial agents devote resources to arranging such trades.
d. these trades create employment for the economy.
e. of mandates from the government.
b
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Suppose you want to open a T-shirt shop. Which of the following would be most helpful in deciding how to price your T-shirts?
(A) Market demand schedule (B) Demand curve (C) Market demand curve (D) Demand schedule
The drawback to calculating real GDP using base-year prices is that
A) real GDP in one year is not comparable to real GDP in another year. B) relative prices change over time and these are not reflected in base-year prices, and this distorts GDP. C) relative prices change over time and these changes are reflected in base-year prices. D) quality changes are reflected in base-year prices.
At the economy's natural rate of unemployment
A. only frictional unemployment exists. B. there is only a relatively small amount of cyclical unemployment. C. only structural unemployment exists. D. the economy is fully employed.
A drawback in the use of sensitivity analysis in capital budgeting decisions is that it doesn't
A) permit evaluating alternative outcomes. B) provide estimates of net present values. C) assign probability values to outcomes. D) consider different possible rates of discount.