Liquidity refers to
a. the relation between the price and interest rate of an asset.
b. the risk of an asset relative to its selling price.
c. the ease with which an asset is converted into a medium of exchange.
d. the sensitivity of investment spending to changes in the interest rate.
c
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In order to reduce labor supply, a union must be able to
a. do all of the following b. force all employers in the industry to hire only union members c. set wages d. agree to wage concessions e. increase union membership
If all fixed taxes in the United States were removed and only variable taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward. b. The expenditure schedule will shift downward. c. The expenditure schedule will become flatter. d. The expenditure schedule will become steeper.
Productivity is a measure of:
A. quantity of output per worker. B. how hard individuals work, not how much they produce. C. the amount of human capital workers obtain through training and experience. D. the amount of capital per worker.
Suppose the total monetary value of all final goods and services produced in a particular country in 2010 is $500 billion and the total monetary value of final goods and services sold is $450 billion. We can conclude that:
A. GDP in 2010 is $450 billion. B. NDP in 2010 is $450 billion. C. GDP in 2010 is $500 billion. D. inventories in 2010 fell by $50 billion.