Question 1
In efficient markets, ________ flows toward ________ opportunities.
◦ investment capital; consumption
◦ investment capital; profit
◦ consumption; profit
◦ consumption; investment
Question 2
Related to the
Economics in Practice on page 199: The price of hot dogs sold from a cart in New York's Central Park is much higher than the standard price elsewhere in New York. Which of the following, if
true, would provide the best explanation for this difference?
◦ Only licensed vendors may sell hot dogs from a cart, and the price of that license is higher for sales in Central Park than it is for sales elsewhere in New York.
◦ The standard price of hot dogs in New York is higher than the standard price of hot dogs in other cities.
◦ In Central Park, prices for hamburgers and other foods are typically higher than they are outside of Central Park.
◦ Almost all hot dog vendors sell essentially the same product: a standard quality-certified hot dog and two varieties of mustard.
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