Why are credit cards not considered part of the money supply?
What will be an ideal response?
Credit cards lengthen the period of time between when some good or service is purchased and when it must be paid for with some part of M1. Credit card payments do not end the transaction. The issuer of the credit card will want payment, usually by check, for the amount of the purchase. Additionally, there is no specific amount of credit card value. Is it the size of credit limits or the available credit or the credit card balances? Finally, you cannot transfer ownership of a credit card as payment for some transaction.
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The institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products is called the:
A. financial system. B. money system. C. market for interest rates. D. market for loanable funds.
If the market price is $5 and you are currently producing at a level where average total cost is $3 and falling, you should
a. b or c, it doesn't matter b. shut down c. produce only enough to cover variable costs d. produce where MR = MC e. produce until the average total cost and average revenue are equal
What is a marginal benefit?
What will be an ideal response?
Which of the following statements is correct?
a. The demand curve typically slopes upward; the supply curve typically slopes downward. b. The demand curve typically slopes downward; the supply curve typically slopes upward. c. Both the demand and supply curves typically slope downward. d. Both the demand and supply curve typically slope upward. e. The demand curve is typically vertical; the supply curve is typically horizontal.