The opportunity cost of the financial resources used to finance the purchase of capital is
A) the price of the capital goods purchased.
B) the real interest rate.
C) the quantity of investment demanded.
D) the supply of investment.
E) capital investment.
B
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Which of the following appears as a liability on the Federal Reserves balance sheet?
A) U.S. government securities owned outright B) Commercial bank deposits C) Gold certificates D) Cash items in the process of collection
The concept of “government failure” implies
A. laissez faire is always best. B. government intervention is always justified since government never fails. C. no market failure can be corrected by government intervention. D. government intervention to correct a “market failure” sometimes fails.
The velocity of money is the __________ number of times a dollar is spent to buy final goods and services in a year
A) total B) average C) marginal D) statistical
Property rights and a strong titling system are seen as important to economic development because they allow:
A. loans to be taken out without risk, increasing the quality, not quantity, of investment. B. loans to be taken out against the equity of their assets, increasing investment. C. agencies with authority to verify titling to thrive in the economy. D. savers to invest in property and capital.