Economics is
a. the narrow study of how to make money in financial markets
b. the broad study of how to allocate unlimited resources to satisfy limited uses
c. the broad study of how to allocate limited resources to satisfy unlimited wants
d. the narrow study of using stocks and bonds to their maximum potential
e. the narrow study of how to be conservative in financial affairs
C
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Developing countries may have excess savings in one region and inadequate savings in another due to
a. interest rate ceilings b. fragmented markets c. inflation d. financial deepening e. all of the above
Suppose that at the prevailing yen-dollar exchange rate there is an excess demand for dollars. To stabilize exchange rates, the United States might
A. Reduce government spending. B. Pursue contractionary monetary policy. C. Raise interest rates. D. Lower taxes.
Summarize the impacts of prices ceilings and price floors on the free market
What will be an ideal response?
If a buyer or seller enters into an exchange with another party who has more information, there is
A. a free-rider problem. B. symmetric information and moral hazard. C. asymmetric information and adverse selection. D. a negative externality imposed.