In macroeconomics, what describes a situation in which two people each want to exchange some good or service that the other can provide?
a. medium of exchange
b. double coincidence of wants
c. interrelated banking
d. the usefulness of money
b. double coincidence of wants
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The fundamental force that drives trade between nations is
A) the government. B) NAFTA. C) absolute advantage. D) comparative advantage. E) legal treaties.
When social costs of an activity exceed private costs
A) there is a tendency for resources to be under-utilized. B) this means that resources are being efficiently used. C) there is a tendency for resources to be over-utilized. D) None of the above is correct.
Which combination of circumstances will most likely raise the rate of interest for a loan the most?
A) low handling charges and low risk B) low handling charges and a long length of time for repayment C) high risk and low handling charges D) high risk and a long length of time for repayment
The price at which the amount consumers wish to purchase equals the amount firms wish to sell is called the
A. equilibrium price. B. optimal result. C. optimal quantity. D. equilibrium quantity.