If credit card balances rise in the economy, then M1 will ________ and M2 will ________
A) decrease; increase
B) not change; increase
C) increase; decrease
D) not change; not change
E) increase; increase
D
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In the above table, the production of 3 pizzas and 35 cases of soda is
A) impossible unless more resources become available. B) feasible but would involve unemployed or misallocated resources. C) possible only if the economy produces with maximum efficiency. D) possible only if there is inflation.
The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is $2, Cathy's marginal utility per dollar from the 3rd Mt. Dew is ________ units per dollar
A) 20 B) 10 C) 32.5 D) 40
If two indifference curves were to intersect at a point, this would violate the assumption of
A) transitivity. B) completeness. C) Both A and B above. D) None of the above.
In order to function as a medium of exchange, money must:
A. be backed by gold. B. be generally accepted in exchange for goods and services. C. be backed by some precious commodity. D. maintain a constant value over an extended period of time.