Which of the following is an example of the precautionary motive for saving?
A. Every month, Chris puts $400 into his saving account so that he can buy a new car in a few years.
B. Pat puts $400 per month in his 401(k) retirement account.
C. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when the parents die.
D. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
Answer: D
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Consumer sovereignty answers which central issue in economics?
a. How will goods be produced? b. Who will produce the goods? c. What goods will be produced? d. For whom will the goods be produced? e. By what method will the goods be produced?
Excess reserves are the amount by which total reserves exceed required reserves
Indicate whether the statement is true or false
The government of a country must make a decision between spending money on a hospital or spending the amount on border security. What kind of decision is this?
a) guns or butter b) decision at the margin c) global trade-off d) production efficiency decision
Suppose that next year the government fixes the number of pollution permits at a quantity less than the number sold this year. If nothing else changes, next year the price of a pollution permit will be:
A. greater than the price of a permit this year. B. less than the price of a permit this year. C. equal to the price of a permit this year. D. equal to the price set by the government.