A consumer holds money to meet spending needs. This would be an example of the:
A. Use of money as a measure of value
B. Use of money as legal tender
C. Transactions demand for money
D. Asset demand for money
C. Transactions demand for money
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At McDonald's, economies of scale at the firm level
a. can be traced to factors such as the use of centralized training and common menus for all restaurants b. exist only in the short run c. occur above the firm's minimum efficient scale d. can be traced to the diminishing marginal productivity of a variable resource, such as labor e. occur over the range of output for which the firm's total cost curve is upward sloping
Free riders enjoy:
A. negative externalities from others' choices to pay for a good. B. positive externalities from others' choices to pay for a good. C. positive externalities from a good they choose to buy themselves. D. positive externalities transferred from consumers who receive subsidies.
A lender obtains funds from depositors by offering short-term interest rates on savings accounts. The lender uses these funds to make longer-term installment loans. Explain how the lender might make use of the futures market to hedge the risk taken.
What will be an ideal response?
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C