Even though credit cards are used by many people in making purchases, they are not included in the M1. A major reason is that
A. credit cards are a way of going into debt, whereas the components of M1 represent assets.
B. credit cards had not yet been invented when money was defined.
C. some credit cards are issued by stores (such as Sears), whereas all money is issued by banks.
D. credit cards are much less liquid than M1.
A. credit cards are a way of going into debt, whereas the components of M1 represent assets.
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A lower price level causes the C + I + G + X curve to shift as a result of a change in all the following EXCEPT
A) an increase in real wealth. B) an increase in foreign spending on domestic goods. C) an increase in aggregate supply. D) a decrease in interest rates.
Figure 10-5
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Figure 10-5 shows the short-run cost relationships for a perfectly competitive firm. Based on this diagram, which point would not be on the firm’s short-run supply curve?
A. D B. B C. C D. H
Public goods are overproduced in the marketplace
a. True b. False Indicate whether the statement is true or false
To maximize its profit, a monopolistically competitive firm
a. takes the price as given and chooses its quantity, just as a competitive firm does. b. takes the price as given and chooses its quantity, just as a colluding oligopolist does. c. chooses its quantity and price, just as a competitive firm does. d. chooses its quantity and price, just as a monopoly does.