Your neighbor has knowledge of economics and you would like her to share it with you. You own a car, a CD player and a new pair of running shoes. You wish to make a trade, but the neighbor does not want what you have. The problem can be stated as follows: You are not satisfying the
A) rule of transaction costs.
B) double coincidence of wants.
C) law of marketability.
D) terms of a common denominator.
B
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Aimee sells hand-embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $42,000, and the opportunity costs of her business are $30,000
What are the implicit costs of her business? A) $12,000 B) $30,000 C) $72,000 D) $86,000
As the interest rate __________, the quantity supplied of money __________ and the quantity demanded of money __________
A) falls; rises; falls B) rises; remains unchanged; falls C) falls; remains unchanged; falls D) rises; rises; rises E) none of the above
If the quantity of money demanded exceeds the quantity supplied, the
A. interest rate will fall. B. demand-for-money curve will shift to the right. C. interest rate will rise. D. supply-of-money curve will shift to the left.
Refer to Figure 17-3. The shifts shown in the short-run and long-run Phillips curves between period 1 and period 2 could be explained by
A) an increase in the natural rate of unemployment from 5.5 to 6.8 percent. B) an increase in the expected inflation rate from 4.0 to 5.5 percent. C) either an increase in expected inflation from 4.0 to 5.5 percent or an increase in the natural rate of unemployment from 5.5 to 6.8 percent. D) None of the above is correct.