Legal Tender is a reference to:
(a) Cash in circulation plus bank credit;
(b) Cash in circulation plus cash reserves held by financial institutions;
(c) Cash in circulation plus government reserves;
(d) Cash in circulation plus deposit accounts with the banking sector.
Answer: (b) Cash in circulation plus cash reserves held by financial institutions;
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In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A) market system B) socialist system C) centrally planned system D) command system
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Assume that households have positive wealth. As the interest rate ________, nonlabor income ________ and current consumption ________.
A. decreases; increases; decreases B. decreases; decreases; decreases C. increases; decreases; increases D. increases; increases; decreases
Making bread at home would be more efficient than making it in commercial bakeries
A) for people who place a sufficiently high value on home baked bread. B) if the ingredients used to make bread increased sufficiently in price. C) if the price of bread made in commercial bakeries did not reflect the efficiency of bakeries. D) if there were no labor costs in home baked bread.