Financial markets are
A) markets where money is traded between the Fed and economic agents.
B) markets where funds accumulated by one group are made available to another group.
C) banks interact to lend and borrow reserves.
D) the market where capital goods are traded.
Answer: B) markets where funds accumulated by one group are made available to another group.
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You are participating in a reality show in which you and several other competitors have been taken to an unknown place and asked to find your way to a destination using a map . You were doing a good job until you reached a crossroad
Confused as to which way to take, you decided to take the road that most of your competitors chose. a) What is the term that is used to refer to such behavior? b) Why do people often behave in this way?
The change in total cost from producing another unit of output equals the
A) average total cost. B) variable cost. C) average variable cost. D) marginal cost.
When money is used to set the value of goods such as cars, and TVs, money is serving as a:
A. unit of account. B. medium of exchange. C. store of wealth. D. unit of wealth.
In a restaurant we can observe people consuming coffee, tea, and juices. All are priced the same. If Ann consumes coffee and Bob consumes a juice, we can conclude that
A. Ann likes coffee more than Bob does, and Bob likes juices more than Ann does. B. Carl, another restaurant guest, will be drinking tea. C. the utility Ann receives from coffee consumption equals the utility that Bob receives from consuming juices. D. Ann derives more utility from coffee than from tea or juices, and Bob derives more utility from juices than from tea or coffee.