Someone who is risk-averse is likely to:
A. invest in a start-up company instead of putting her money under her mattress.
B. buy company stock instead of putting money in a savings account.
C. buy a government bond instead of a stock.
D. All of these statements are true.
Answer: C
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Explain why the money supply does NOT change when one individual writes a check to another
What will be an ideal response?
Purchasing power parity shows how many units of currency are needed in one country
a. to equate its gross domestic product to the gross domestic product of another country. b. to equate its gross domestic product and its gross national product. c. to buy the same amount of output that one unit of currency buys in another country. d. to equal total purchasing power in another country.
Which of the following is NOT a reason why there are gains to specialization?
A. It further improves skills through experience and practice. B. It allows individuals to concentrate on the activities in which they have a comparative advantage. C. It eliminates many of the costs of switching from one task to another. D. It increases the amount productive resources in the economy.
Consider the following figure that shows the demand and the cost curves of a perfectly competitive firm. If the price-taking firm is currently producing 6 units, it should _____ to maximize profit in the short run
a. ?decrease production below 6 units b. ?increase production to 12 units c. ?increase production to 8 units d. ?keep producing 6 units e. ?increase production to 14 units