Define asset liquidity. Provide an example of a highly liquid and highly liquid asset.
What will be an ideal response?
An asset’s liquidity is the ease with which an asset can be converted quickly into cash with little or no loss of purchasing power. It can be concluded from this definition that cash is the most liquid asset available in our economy. On the other hand, a house is an example of a very liquid asset. Houses are liquid because they may take time to sell and because there are a substantial number of fees associated with the sale of a house and these fees generate a loss of purchasing power.
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Refer to Table 18.1. The opportunity cost of a glove in Panama is
A) 1/8 of a hat. B) 3/4 of a hat. C) 4/3 hats. D) 8 hats.
Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, what is the marginal benefit for each unit of lumber produced?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $3
B) $7
C) $2
D) $5
The fact that voters perceive their votes as unlikely to actually change the outcome of an election causes
a. voters to have little incentive to become informed about candidates and political issues. b. voters to spend a great deal of effort becoming informed about candidates and political issues. c. the percent of people who actually turn out to cast a vote on election day to be very high. d. people to be extremely reluctant to "waste" their votes on a third-party candidate.
Beginning in 1990, the Federal government:
A. Decreased the annual immigration quota from 700,000 to 500,000 B. Increased the annual immigration quota from 500,000 to 700,000 C. Increased the annual immigration quota from 250,000 to 500,000 D. Increased the annual immigration quota from 500,000 to 1 million