People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is
A) extremely liquid.
B) a unique good for which there are no substitutes.
C) the only thing accepted in economic exchange.
D) backed by gold.
A
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Interest is ultimately
A) any return on investment. B) the price of money. C) unearned income. D) the difference between the subjective value of a good now and a good later.
Which of the following does NOT provide a positive externality?
A. Getting a flu vaccine B. The proliferation of email accounts C. Airport and aircraft noise D. Actions that benefit others
Which of the following is the largest single component of the market basket used to compute the consumer price index (CPI)?
A. food and beverages B. housing C. transportation D. medical care
When using the terms "total utility" or "marginal utility" we assume:
a. the consumer will exchange one commodity for another b. the consumer will part with money for the commodity c. the consumer has declined to purchase the commodity d. a and b are correct