Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy corn farmer in Iowa, who sells his output in the world commodity market, does not. Why is this so?
A) because unlike Microsoft, the wealthy corn farmer is probably a monopolist
B) because the wealthy corn farmer is a price taker who chooses his optimal output independently of market price but Microsoft's optimal output depends on the price it selects
C) because Microsoft could potentially lose sales if it sets prices indiscriminately
D) because Microsoft is large enough to hire the best people in the field
C
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Shocks and Integration) The graph shows hypothetical OCA economic criteria for several South American countries. Using the graph, which of the following best satisfy the OCA criteria for forming a monetary union?
A) Peru and Colombia B) Peru and Uruguay C) Venezuela and Uruguay D) Colombia and Venezuela
Which one of the following is included in M2 but NOT in M1?
A) coins and currency B) transaction deposits C) a savings deposit without a set maturity D) large-denomination time deposits