Which of the following statements best describes the economist's view of finance and the financial system?
a. The financial system is very important to the functioning of the economy, and the tools of finance are often helpful to us as individuals when we find ourselves making certain decisions.
b. The financial system, while interesting, is not very important to the functioning of the economy; however, the tools of finance are often helpful to us as individuals when we find ourselves making certain decisions.
c. The financial system is very important to the functioning of the economy; however, the tools of finance are not particularly helpful to us as individuals since we seldom make decisions for which those tools are useful.
d. The field of finance is intimately concerned with the financial system and the tools of finance, and financial economists see great importance in them; however, the "mainstream" economist sees little value in studying financial markets or the tools of finance.
a
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The function which shows combinations of inputs that yield the same output is called a(n)
A) isoquant curve. B) isocost curve. C) production function. D) production possibilities frontier.
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 110 and then remain at 110. B. directly from 100 to 105 and then remain at 105. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.
The U.S. sugar price support program has:
A. cost U.S. consumers much more than it has benefited U.S. sugar producers. B. cost U.S. consumers much less than it has benefited U.S. sugar producers. C. reduced the price of sugar to U.S. consumers. D. increased sugar imports as a percentage of U.S. sugar consumption.
For a monopolistically competitive firm ________ at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve.
A. in long-run equilibrium B. to shut down C. earning short-run profits D. suffering short-run losses