Why do people keep currency in their pockets when bank deposits pay interest?
A. Because bank deposits lose value due to inflation.
B. Because bank deposits lose value due to changes in interest rates.
C. Because banks might steal your money.
D. Because currency is more liquid.
Answer: D
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Rapid population growth in Malthus's theory is constrained through:
A) higher fertility and reduced mortality. B) reduced fertility and higher mortality. C) higher fertility and mortality. D) reduced fertility and mortality.
When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit
What other motive would Wal-Mart have for choosing to build a large store? A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would. B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store. C) A larger store will give Wal-Mart greater political influence in the community. D) A larger store may deter entry into the town by a rival firm.
If Stock A sometimes increases and sometimes decreases in value when Stock B decreases in value at the same time, they are
A) negatively correlated. B) uncorrelated. C) positively correlated. D) random bets.
Suppose the value of income elasticity of demand for a private college education is equal to 1.5 . This means that
a. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education b. every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education c. a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased d. a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased e. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent