Which of the following statements is most correct?
A. When the real interest rate increases the reward for saving decreases.
B. When the real interest rate decreases the cost of current consumption increases.
C. When the real interest rate decreases current consumption becomes less expensive and the reward for saving decreases.
D. When the real interest rate increases the level of saving always decreases.
Answer: C
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Which of the following is the best definition of money?
a. anything generally accepted as a payment for goods or repayment of debt b. anything that is a liability of the federal government c. anything that is a liability of a commercial bank d. coins and currency in the hands of the public
Which of the following product-groups is a leading export of the United States?
A. Home appliances B. Metals C. Agricultural products D. Computers
The amount of a product that people are willing and able to purchase at a specific price is referred to as the:
a. demand. b. quantity demanded. c. law of demand. d. consumption function. e. purchasing power.
Elsa is annoyed that it costs her 25 cents to park her car at the city park, which is free to enter. Her friend says _______________, which demonstrates how the government provides public goods.
a. “The city council is lining their own pockets with those quarters.” b. “Those parking fees help keep the park maintained and open for everybody.” c. “The park is free because it doesn’t need any maintenance, but the parking spaces do.” d. “So don’t pay it. What difference does it make?”