Juan purchases automobile insurance; the insurance contract is a:
A. financial instrument.
B. financial intermediary.
C. transfer of risk from the insurance company to Juan.
D. form of money.
Answer: A
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According to your text, the "market economy" can best be understood as
A) an institution created by British merchants around the time of Smith's Wealth of Nations. B) an extremely complex institution that emerged out of individuals specializing and trading among each other. C) an institution unique to America. D) an institution that could not exist in the absence of regulation.
Suppose Barry is maximizing his utility from consuming used paperback novels and audio books. The price of a used novel = $4 and the price of an audio book = $8
If the marginal utility of the last novel was 32 units of utility (utils) what was the marginal utility of the last audio book purchased? A) 2 utils B) 12 utils C) 16 utils D) 64 utils
The money demand curve has a
A) positive slope because an increase in the price level increases the quantity of money demanded. B) negative slope because an increase in the interest rate decreases the quantity of money demanded. C) negative slope because an increase in the price level decreases the quantity of money demanded. D) positive slope because an increase in the interest rate increases the quantity of money demanded.
The demand schedule for a good
a. indicates the relationship between the price of the good and the price of other goods. b. indicates the quantities of the good that people will buy at various prices. c. illustrates the quantity producers will provide at alternative prices. d. is determined primarily by the cost of producing the good.