Are outstanding credit card balances counted as part of the money supply?
a. Yes; they are used to purchase things, and therefore, they are included in the money supply figures.
b. No; money is an asset, while the credit card balances are a liability. Thus, they are not included in the money supply figures.
c. Partly; credit card balances of $100 or less are included in the M1 money supply, but the money supply figures do not include balances in excess of $100.
d. Partly; credit card balances are included in the M1 money supply, but not the M2 money supply.
b
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The degree to which an asset can be acquired or disposed of without much loss of nominal value or transaction costs is known as
A) fiducia. B) credit. C) fiat money. D) liquidity.
Michael Jordan has more athletic ability than most individuals. Thus, he is more productive at most tasks involving physical skill. Explain why then, it is more efficient for Michael Jordan to pay someone else to mow his lawn
What will be an ideal response?
Refer to the Article Summary. Based on the difference between the face value of Super Bowl tickets and the prices being charged in the resale market, the demand at the face value of the tickets is
A) elastic. B) unit elastic. C) inelastic. D) perfectly elastic.
Externalities exist because
A. private costs differ from social costs. B. low productivity of workers in production. C. too much government interference in the market. D. private costs are equal to social costs.