Why has M2 grown more quickly than M1 in recent decades?
A) Currency in circulation has declined.
B) People own more shares of stock than in the past.
C) The amount of funds in CDs and money market mutual funds shares has grown faster than currency or checking deposits.
D) Most people use debit cards instead of checking accounts.
C
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Refer to Figure 8.1. This situation represents a
A) pure coordination game. B) prisoner's dilemma game. C) chicken game. D) battle of the sexes game.
The capital stock increases whenever
A) gross investment is exceeds net investment. B) net investment exceeds gross investment. C) gross investment is negative. D) net investment is positive.
If an industry is made up of five identical firms, the four-firm concentration ratio is
A) 5%. B) 20%. C) 80%. D) 100%.
Suppose the total cost of producing 40,000 flash drives is $120,000, and the fixed cost is $30,000
a. What is the variable cost? b. When output is 40,000, what are the average variable cost and the average fixed cost? c. Assuming the cost curves have the usual shape, is the dollar difference between the average total cost and the average variable cost greater when the output is 40,000 flash drives or when the output is 60,000 flash drives? Explain.