A marketplace where savers and borrowers can exchange funds directly is called a _____
a. bond market
b. financial market
c. stock market
d. loanable funds market
b
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Which one of the following is based on the idea that the marginal utility of income diminishes as income increases?
a. Progressive taxation b. Capital controls c. Minimum wages d. Price controls e. Employee compensation regulations
Putting quarters into a Las Vegas slot machine and receiving quarters out of that machine is analogous to the circular flow model because
a. the value of the resources flowing into firms is precisely the value of the goods and services flowing out of firms b. the value of the components of national income flowing into the firms is precisely the value of consumption and investment flowing out of the firms c. the absolute dollar amount of the production goods going out from the firms equals the absolute dollar amount of the consumption goods that households consume d. households gamble e. you can then substitute the casino economy for the get-rich-quick schemes that are all too prevalent in the economy today
What would the Herfindahl-Hirschman Index equal for an industry consisting of six firms with market shares of 5%, 10%, 15%, 20%, 25%, and 25%?
a. 100 b. 1,350 c. 1,375 d. 2,000
Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
A. efficient rationality. B. rules of thumb. C. focal point equilibrium. D. bounded rationality.