Keith just got an iPhone 5 for his birthday, and he quickly switches his data over and throws his iPhone 4 in a drawer and forgets about it. Economists would say this behavior is ___________ and would use the concept of ________________ to explain this choice.
A. rational; the implicit cost of ownership
B. irrational; the implicit cost of ownership
C. irrational; ignoring sunk costs
D. rational; considering sunk costs
B. irrational; the implicit cost of ownership
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The takings clause states that the government can seize private property only if ________ is provided
A) comparably-valued property B) just compensation C) fair market value D) the seller's asking price
The Mint Act of 1792 failed to provide for a stable domestic hard currency for the U.S. because
(a) the supply of gold and silver was inadequate. (b) the federal government failed to make the coins legal tender. (c) gold was undervalued, while silver was exported. (d) the notes of the U.S. government were not accepted by the population because of their low value, while the government had no gold to offer.
The amount that the bank is legally required to keep on hand is called the:
A. demand deposits. B. reserve ratio. C. required reserves. D. federal funds.
A small open economy increases its desired saving. This causes the world real interest rate to ________ and the country's current account balance to ________.
A. fall; fall B. fall; rise C. remain unchanged; fall D. remain unchanged; rise