Have you ever bought a good by exchanging a piano for it? Unlikely. Economists emphasize this point when they discuss the degree to which an asset can easily be used as money. They refer to the asset's
a. liquidity
b. convertibility
c. availability
d. medium of exchange
e. thriftiness
A
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Being on the production possibilities frontier implies that increasing the production of one good or service can only be accomplished by decreasing the quantity produced of another good or service.
Answer the following statement true (T) or false (F)
The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in
A) total factor productivity. B) the capital stock. C) the labor force. D) both the capital stock and the labor force.
Foreign real national income rises. This raises U.S. ___________ which ________ aggregate demand (AD). The AD curve shifts ___________ as a result
A) net exports; raises; rightward B) imports; raises; rightward C) prices; reduces; leftward D) investment; reduces; leftward E) none of the above
Harry used to work in a launderette and earned $30 a day. After work, he normally had a chicken burger worth $5 at McDonalds. After his pay was lowered to $20 he would purchase a vegetable burger worth $3 instead of the $5 chicken burger. In this scenario, the vegetable burger is an example of a(n)
A. luxury good. B. complement good. C. inferior good. D. normal good.