George makes $250 a week working as a student aid. When he cashes his check he takes $100 to the cashiers office to pay part of his tuition. $25 goes to paying off his books, $75 goes for entertainment and $50 he keeps for unexpected expenditures
Which of the following statements is TRUE?
A) The transactions demand for money is $125, the precautionary demand is $75 and the asset demand is $50.
B) The transactions demand for money is $0, the precautionary demand is $250 and the asset demand is $0.
C) The transactions demand for money is $200, the precautionary demand is $50 and the asset demand is $0.
D) The transactions demand for money is $250, the precautionary demand is $0 and the asset demand is $0.
C
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In 1970 the Social Security tax rate was ______ and had increased to ______ by 2012.
A. 0.84%; 0.124% B. 12.4%; 8.4% C. 8.4%; 12.4% D. 84%; 124%
The law of increasing additional costs is due to
A) taxes. B) scarcity. C) the fact that it is more difficult to use resources efficiently the more society produces. D) the fact that resources are not perfectly adaptable for alternative uses.
Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for pizza makers?
A) The demand for pizza makers increased. B) The demand for pizza makers decreased. C) The supply for pizza makers increased. D) The supply for pizza makers decreased.
What is a criticism of the CPI?