Distinguish between saving and savings. How does investment relate to this distinction, if at all?
What will be an ideal response?
Saving is a flow concept and savings is a stock concept. Saving is the act of not consuming all of one's income in a year. Savings is a stock of wealth at a point in time. Investment is also a flow concept. For investment to take place, there must be saving.
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Refer to the market diagram. Relative to the surplus achieved under perfect competition, how much surplus is lost (deadweight loss) when there is a monopoly?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. E
b. H
c. E + H
d. D + G + E + H
The supply of money must be great enough to meet ordinary transaction needs, ______
Fill in the blank(s) with the appropriate word(s).
If a school that offers higher wages to its staff is set up near a school that offers comparatively lower wages to its staff, what will be the effect on the wage rate and the staff strength in the school that pays lower wages?
What will be an ideal response?
Which of the following was not a contributing factor to the high rate of bank failures in the 1980s and 1990s?
a. Falling farm prices b. The introduction of Automated Teller Machines (ATMs) c. Falling land values d. Bad loans to Mexico and other less-developed countries e. Risky investments