Making "how much" decisions involves
A) calculating the total costs of the activity and determining if you can afford to incur that expenditure.
B) calculating the total benefits of the activity and determining if you are satisfied with that amount.
C) determining the additional benefits and the additional costs of that activity.
D) calculating the average benefit and the average cost of an activity to determine if it is worthwhile undertaking that activity.
C
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If there is an increase in the amount of currency held outside banks, then the
A) quantity of money and the monetary base will decrease. B) monetary base will decrease. C) quantity of money will increase. D) quantity of money will not change. E) quantity of money will decrease.
Employee theft is an example of ________
A) adverse selection B) moral hazard C) herd behavior D) internalizing of externalities
Unplanned inventory decreases: a. tend to result in an decrease in income
b. tend to result in an increase in real output. c. tend to further reduce production. d. signal that demand was weaker than expected.
Which if the following does not affect the nominal interest rate?
a. The real interest rate. b. The current inflation rate. c. Society's time value of money. d. The amount of government borrowing. e. The expected inflation rate.