When banks allow people to make purchases by using a credit card or writing a check, they are providing ______.
a. a dividend
b. a medium of exchange
c. diversification
d. double taxation
b. a medium of exchange
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. raises; raises B. lowers; raises C. raises; lowers D. raises; does not change
If the Fed increases the quantity of money, in the short run the ________ and in the long run the ________
A) nominal interest rate falls; the price level falls B) nominal interest rate falls; the price level rises C) price level rises; the nominal interest rate falls D) nominal interest rate rises; the price level falls E) nominal interest rate rises; the price level rises
Suppose a typical firm in a particular industry is making positive economic profits. These economic profits
a. reflect a waste of society's scarce resources and reflect inefficient production. b. signal owners of factors of production to move their resources out of that industry. c. imply that accounting costs are greater than economic costs in this industry. d. signal owners of factors of production to move resources into this industry.
The local car dealership has an increase in inventory of 100 newly produced cars in 2015 . In 2016, it sells all 100 cars. Which of the following statements is correct?
a. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP. b. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP. c. The value of the cars in inventory will be counted as part of 2015 GDP, and the value of the cars sold in 2016 will increase 2016 GDP. d. The value of the cars in inventory will not affect 2015 GDP, and the value of the cars sold in 2016 will not increase 2016 GDP.