Which of the following statements about M1 and M2 is true?
A) Demand deposits are not part of M1.
B) M2 is more liquid than M1.
C) M1 is larger than M2.
D) Savings deposits are part of M2.
D
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If the marginal cost of treating an illness is zero, then the optimal amount of treatment to receive is the amount:
A. for which the average benefit of treatment is zero. B. for which the marginal benefit of treatment is zero. C. for which the total benefit of treatment is zero. D. that makes the patient is as healthy as possible.
Which kind of risk affects the opportunity cost of capital?
A) Nondiversifiable risk B) Diversifiable risk C) Both nondiversifiable and diversifiable risk D) The risk inherent in "riskless" assets such as U.S. Treasury bills E) The risk inherent in "riskless" portfolios such as broad stock market holdings
The decline of the full-service wholesale houses CANNOT be traced to
a. competition from the marketing departments of large manufacturers. b. many industries adopting the "continuous process" manufacturing. c. the rise of brand identity. d. All of the above are correct. e. Only a and c are correct.
Which statement best defines producer surplus?
a. the amount that a seller would have liked to have charged, minus the amount that they actually received b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another