Which of the following statements is true?
A. A savings deposit is not counted in the most basic, or narrow, definition of the money supply.
B. M1 is sometimes referred to as transactions money.
C. Money reduces the transaction costs of making exchanges.
D. b and c
E. a, b, and c
Answer: E. a, b, and c
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A man can rewire a house in 12 hours and can panel a room in 15 hours, and his teenage son can rewire a house in 18 hours and can panel a room in 16 hours. Who is more efficient in rewiring a house, and who is more efficient in paneling a room?
a. The father is more efficient at both activities. b. The father is more efficient at rewiring a house, and the son is more efficient at paneling a room. c. The father is more efficient at paneling a room, and the son is more efficient at rewiring a house. d. The two are equally efficient at both activities.
If a firm wants to determine total cost, it needs
A. to add its variable costs to its fixed costs. B. the prices of inputs and of output. C. the variable cost per unit. D. the production function and the price of its output.
The Russian government wants to reduce the consumption of vodka. A one hundred rouble tax on each bottle purchased may reduce the consumption of vodka under which circumstance(s)?
A) Vodka is an inferior good. B) Vodka is a normal good. C) Vodka is an inferior good and the taxes collected from this tax are rebated to consumers. D) Vodka is a normal good and the taxes collected from this tax are rebated to consumers. E) both B and C
If Claire's reservation price on a sweater is $37, which of the following prices would she have to observe in the market in order to buy a sweater?
A. $37.01 B. $38.00 C. $37.00 D. Claire would not buy a sweater at any of these prices.