People hold money as an asset rather than other assets because
A. it holds its value.
B. it grows in value.
C. there is no cost to holding money as an asset.
D. it is highly liquid.
Answer: D
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The figure above shows the supply curve for soda. The market price is $1.00 per soda. The marginal cost of the 20,000th soda is
A) $0.00. B) $0.50. C) $1.00. D) more than $1.00. E) None of the above answers is correct.
You have just won a cash award of $500 for academic excellence
A) The substitution effect of this award will be larger than its income effect. B) The income effect of this award will be larger than its substitution effect. C) The substitution and income effects will be of identical size. D) It is impossible to know whether the substitution effect is larger than the income effect or vice versa.
Societies in which _____ produce more entrepreneurs
a. the ratio of immigrants to the local population is high b. culture supports individual achievements c. individuals are self-interested d. immigrants are allowed to hold government positions e. immigrants are more intelligent than the local population
Total revenue
a. can be calculated directly from the demand curve. b. can be calculated directly from the average revenue curve. c. is found by multiplying price times quantity. d. All of the above are correct.