The information to be gathered for a decision depends on which of the following?
a. The current market conditions and on the expected costs and benefits of acquiring the information.
b. The model that underlies a decision and on the expected costs and benefits of acquiring the information.
c. The cost of the information and the current market conditions.
d. The model that underlies a decision and the amount of information that is internally available.
B
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Since 1970, as a percent of GDP, M1 held has steadily decreased. Which of the following can account for this fact?
A) Real GDP has increased since 1970. B) The price level has risen since 1970. C) The nominal interest rate has steadily risen since 1970. D) The nominal interest rate has steadily fallen since 1970. E) Credit cards have become more widely available since 1970.
Which of the following equations is true in an open economy?
A) Net exports = -Financial account balance. B) National saving = net capital flows. C) Net exports = net foreign investment. D) Private saving = net foreign investment + domestic investment.
Import restrictions
A) can protect United States jobs in the protected industry, which increases economic welfare of the country as a whole. B) can protect United States jobs in the protected industry but will also lead to job reductions in other export industries. C) hurt people who work in importing companies, but makes consumers better off. D) cannot protect American jobs in any sector of the economy.
The consumer maximizes his total utility (measured in money terms) when, at his chosen quantity of every good he buys, marginal utility
a. equals zero. b. divided by price equals zero. c. equals price. d. equals total utility.