Money market mutual funds are included in
a. M1 but not M2.
b. M1 and M2.
c. M2 but not M1.
d. neither M1 nor M2.
c
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When the government chooses to spend the tax dollars that it collects on homeland security, its choice
A) involves a tradeoff of other goods and services such as education for more homeland security. B) illustrates that scarcity does not always exist. C) involves no tradeoff because the defense is necessary. D) primarily affects who gets the goods and services produced.
Two parties can capture gains from specialization and trade whenever: a. One party is twice as good as producing all goods as the other
b. The opportunity costs of producing each good are the same for both parties. c. Both parties can produce equal amounts of both goods. d. None of the above are true.
A contestable market is one in which prices are moderated by the
a. need to build an empire b. desire to maximize output c. noncompetitive nature of the market d. threat of potential entry e. regulations imposed by government
The cross elasticity between any two goods that determines whether or not they are in the same market is
a. 0 b. 1 c. 3 d. 4 e. 10