A rational person:
A. makes choices based on total benefits and total costs.
B. undertakes activities until the net benefits become less than zero.
C. considers the financial benefits and financial costs of making a choice.
D. makes choices based on added benefits and added costs.
Answer: D
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Which of the following statements about M1 and M2 is not true?
A) Transaction accounts are part of M1. B) M2 is more liquid than M1. C) M2 is larger than M1. D) Transaction accounts are part of M2.
Which term refers to a labor union and a firm negotiating over wages or benefits?
a. Collective bargaining b. Mediation c. Arbitration d. Cooperative bargaining
In the United States, the money for loans to businesses comes mainly from
a. corporate profits. b. the federal government. c. savings held in lending institutions. d. state and local governments.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.