Which of the following statements about markets is not true?
A. Markets necessarily have a physical location.
B. The two types of markets include the factor and product markets.
C. Every market transaction involves an exchange of money for goods or resources or a direct exchange of goods or resources without money called barter.
D. Markets have both a demand side and a supply side.
Answer: A
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Refer to Current and Future Consumption. The diagram shows the case of a
a. representative agent.
b. net borrower.
c. net lender.
d. disequilibrium situation.
As the price paid to a resource increases,
a. the supply of that resource will increase in the resource market. b. the supply of that resource will decrease in the resource market. c. resources will shift from other resource markets to this one. d. resources will shift from this resource market to others. e. resource usage will be unaffected.
Which of the following examples shows equilibrium price in practice?
a. Nostalgia Gifts, Inc sells 60 percent of their snow globes for $10 each and then sell the rest for $5 each. b. Nostalgia Gifts, Inc sells all their snow globes for $10 each, but consumers demand more. c. Nostalgia Gifts, Inc sells 80 percent of their snow globes for $10 each without consumers demanding more. d. Nostalgia Gifts, Inc sells all their snow globes for $10 each without consumers demanding more.
If your bank receives a checkable deposit that results in $20,000 in excess reserves, and the banking system makes loans totaling $60,000, the maximum possible, then the money multiplier must be:
A. 2. B. 3. C. 3.5. D. 4.