The main advantage of using M2 instead of M1 as the measure for money is that
A. M2 is sometimes more stable.
B. M2 can be measured more accurately.
C. M2 includes only instantly accessible assets.
D. M2 varies as the interest rate varies.
Answer: A
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All points on an indifference curve represent combinations of two goods that are equally desirable to the consumer.
Answer the following statement true (T) or false (F)
Made in the USA or Made in China has less meaning for products that
A) are a commodity such as iron ore. B) are an agricultural product such as wheat. C) are a product that is technological and involves assembling many different types of sometimes sophisticated components. D) are a product that is produced and consumed domestically. E) were produced fifty years ago versus the types of products manufactured today.
When Iceland can generate a product using fewer labor hours and resources than the United States, an economist would say that Iceland had
a. a comparative advantage in production of the product. b. an absolute advantage in production of the product. c. a higher opportunity cost of producing the product. d. no incentive to import the product, regardless of the cost-price conditions for other products.
Asset price "bubbles" occur when buyers expect asset prices to increase in the future.
Answer the following statement true (T) or false (F)