Keynes hypothesized that the precautionary component of money demand was primarily determined by the level of
A) interest rates.
B) velocity.
C) income.
D) stock market prices.
C
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When Joe maximizes utility, he finds that his MRS of X for Y is greater than Px/Py. It is most likely that:
A) Joe's preferences are incomplete. B) Joe's preferences are irrational. C) Joe is not consuming good X. D) Joe is not consuming good Y.
John has decided to view the solar eclipse tomorrow. The eclipse is an example of
A) a good. B) an economic good. C) a service. D) entrepreneurship.
More recently, the velocity of money was:
A. higher during the housing boom and lower during the recession that followed. B. lower during the housing boom and higher during the recession that followed. C. consistently higher than the historical trend since the mid-1980s. D. consistently lower than the historical trend since the early 1990s.
The differences between a competitive market and a monopoly include all of these except:
a. excess profits would be competed away in a competitive market, but persist in a monopolistic market b. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices c. a competitive market's cost curves will shift with the market, while a monopoly's cost curves will remain stable d. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices