Jack F. Altrades's decision whether to purchase a good from a firm or hire resources directly in the market will
a. depend, in part, on his production skill but not on his contract negotiation skill
b. depend, in part, on the opportunity cost of his time but not on his skill
c. not depend on the cost of identifying, measuring, and pricing inputs
d. not depend on the cost of negotiating contracts
e. depend, in part, on both his skill and the opportunity cost of his time
Question 2
A speculator in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date
b. earns illegal profit by manipulating foreign exchange
c. causes differences in exchange rates in different geographic markets
d. simultaneously buys large amounts of a currency in one market and sells it in another market
e. takes no risks in foreign currency exchanges
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