Which of the following statements is true?
(a) A barter system requires a double coincidence of wants.
(b) Holding cash is a good way of preserving the value of assets.
(c) Commercial banks must cover their deposits fully with cash reserves.
(d) A fall in reserve requirements forces banks to curtail credit.
Ans: (a) A barter system requires a double coincidence of wants.
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A company's net present value:
A. adds up the value of all the assets a company currently owns. B. is a measure of the book value of that company. C. is the current value of the company's expected future cash flows. D. tells you the "correct" price of shares in the company.
In a labor-market pooling equilibrium with high-skill and low-skill workers and where a costly educational degree is used as a signaling device,
A) the high-skill workers' wage is larger than the low-skill workers' wage. B) the low-skill workers' wage is zero. C) the high- and low-skill workers receive the same wage. D) the high-skill workers' wage is equal to the low-skill workers' wage plus the cost of obtaining a degree.
Which of the following is true of The Stigma of the Newcomer?
A. It is less common today than it was several generations ago. B. It is more relevant today because neighbors do not know each other well. C. It would be more likely to occur in New York City than in a rural community in Iowa. D. It relates to the introduction of new technology so none of the answers are correct.
As the price of a product falls, the demand for the product increases, ceteris paribus.
Answer the following statement true (T) or false (F)