One reason that "near-monies" are important is because:
A. They simplify the definition of money and therefore the formulation of monetary policy
B. They can be easily converted into money or vice versa, and thereby can influence the stability of the economy
C. They do not reflect the level of consumer spending but they have a critical impact on saving and investment in the economy
D. Credit cards synchronize one's expenditures and income, thereby reducing the cash and checkable deposits one must hold
B. They can be easily converted into money or vice versa, and thereby can influence the stability of the economy
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Which of the following expenditures is for an intermediate good?
A) The government buys new tires for its military vehicles. B) A U.S. tire firm sells new tires to Canada. C) General Motors buys new tires to put on the cars it's building. D) You buy new tires for your used car.
An example of peak pricing is charging
A. more for long-distance phone calls in the daytime. B. less for electricity at night. C. more for public transportation in rush hours. D. All of the above are true.
An increase in the deadweight loss (DWL) means
A) an additional reduction in welfare by one group that is not offset by a gain to another group. B) an additional reduction in welfare by one group that is offset by a gain to another group. C) an additional increase in welfare by one group that is not offset by a gain to another group. D) an additional increase in welfare by one group that is offset by a gain to another group.
A change in the composition of the population will generally
a. change demand only if there is a change in the size of the population b. change demand only if there is no change in the size of the population c. change demand even if there is no change in the size of the population d. have absolutely no effect on demand e. result in a movement along the demand curve