The most liquid asset(s) of all is (are)
a. cash in the hands of the public
b. cash in the hands of banks
c. demand deposits held by households and businesses at commercial banks
d. travelers' checks
e. credit cards
A
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According to the second law of thermodynamics
a. matter and energy can be neither created nor destroyed b. nature’s capacity to convert matter and energy is limited c. nothing is lost in the conversion of materials from economic activity into other forms of matter and energy d. all of the above e. none of the above
A consumer has $1,000 a week to spend on renting square feet of housing (at a price of $5 per square foot) and eating out (at a price of $20 per meal). With square feet of housing on the horizontal and meals on the vertical axis, what is the vertical intercept and what is the slope of this consumer's budget constraint?
What will be an ideal response?
Why are people more inclined to pick up a dime off the pavement in a parking lot, but not so inclined to dig three feet into the earth for a previously-buried dime?
A) The entrepreneurial spirit of Americans is gone. B) They don't know the value of the dollar—or dime—anymore. C) They weigh the expected additional costs and benefits, and choose accordingly. D) People haven't taken enough economics in college.
The entry of new firms into a perfectly competitive market will cause:
A) both the equilibrium price and quantity to increase. B) both the equilibrium price and quantity to decrease. C) the equilibrium price to increase but the equilibrium quantity to decrease. D) the equilibrium price to decrease but the equilibrium quantity to increase.