The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
A) substitution B) population C) ceteris paribus D) income
D
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In economics, money is defined as
A) any asset people generally accept in exchange for goods and services. B) the total amount of salary, interest, and rental income earned during a year. C) the total value of one's assets minus the total value of one's debts, in current prices. D) the total value of one's assets in current prices.
When a person holds money, they give up
A) the pleasure associated with spending money. B) the pleasure associated with saving money. C) the interest that could have been earned if the money had been changed into an interest-bearing asset. D) nothing, since the person can always use the money to buy goods or services or interest-bearing assets.
Which central coordination task has claimed the most attention of central planners?
A. Output selection B. Production planning C. Distribution D. Rationing
The opportunity cost of something is the gain you receive as a result of your sacrifice.
Answer the following statement true (T) or false (F)