Tippi received a rebate of $2,000 for a hybrid car she purchased in May 2016. Tippi put this money in a saving account so that she could spend it when she went on safari in September 2016. This is an example of money serving as a(n)
A. store of value.
B. investment good.
C. medium of exchange.
D. unit of account.
Answer: A
You might also like to view...
What are the policy actions taken by the Fed and the U.S. Treasury in response to the financial crisis?
What will be an ideal response?
Alex just got a new car. Because Alex obtained full-coverage car insurance, Alex will have an incentive to ________ because of ________.
A. drive more cautiously than if he didn't have insurance; adverse selection B. drive more cautiously than if he didn't have insurance; moral hazard C. drive less cautiously than if he didn't have insurance; adverse selection D. drive less cautiously than if he didn't have insurance; moral hazard
If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
A. The quantity of beef demanded will decrease. B. The quantity of beef supplied will increase. C. There will be a surplus of beef. D. There will be a shortage of beef.
Making "how much" decisions involves
A) calculating the total benefits of the activity and determining if you are satisfied with that amount. B) calculating the total costs of the activity and determining if you can afford to incur that expenditure. C) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity. D) determining the additional benefits and the additional costs of that activity.