In the 1970s, U.S. consumers transferred their deposits from accounts in banks and thrifts to money market mutual funds because money market mutual funds:
a. were more liquid
b. were less risky.
c. paid higher interest rates.
d. were guaranteed for a larger amount.
e. were more liquid and paid higher interest rates.
c
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A country currently is using all its land to produce wheat and grapes. However, the land most suited to growing grapes is being used to produce wheat, and the land most suited to growing wheat is being used to produce grapes. Which of the following statements is true?
a. The country is operating outside of its production possibilities frontier. b. The country is operating along its production possibilities frontier. c. Wheat production must be sacrificed if the country increases grape production. d. Grape production must be sacrificed if the country increases wheat production. e. The country is operating inside its production possibilities frontier.
Suppose Mr. Lee has total income of $120,000, has taxable income of $90,000, and pays $30,000 in taxes. Considering the information, what is Mr. Lee's effective tax rate?
A. 33.33 percent. B. 72 percent. C. 25 percent. D. 66.7 percent.
A useful economic model
A) utilizes only the two most important factors to analyze the problem under consideration. B) generates statements that are incapable of refutation. C) represents every detail of the real world. D) yields usable predictions and implications for the real world.
Tariffs:
A. may be imposed either to raise revenue (revenue tariffs) or to shield domestic producers from foreign competition (protective tariffs). B. are also called import quotas. C. are excise taxes on goods exported abroad. D. are per-unit subsidies designed to promote exports.