Which of the following statements is true of fiat money?
a. Fiat money has to be backed by gold assets
b. Fiat money is not backed by any valuable asset.
c. The intrinsic value of fiat money should always exceed its extrinsic value.
d. The intrinsic value of fiat money should always be equal to its extrinsic value.
b
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Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A can make a maximum loan of
A) $2,000. B) $8,000. C) $10,000. D) $50,000.
The free-rider problem plagues public goods because
A) public goods are not produced by profit-maximizing firms and hence can be produced only at a loss to society. B) once public goods are produced it is not possible to exclude anyone from consuming these goods. C) the government can refuse to serve a citizen. D) the public doesn't care about public goods.
Which of the following people would be considered frictionally unemployed?
a. The President of the United States b. An elementary school student c. A lifeguard unemployed during the winter d. A high school graduate entering the labor market for the first time e. A person laid off from his job
Refer to Figure 8.6, which shows a firm's short-run average cost curves for three different levels of capital. Which of the following statements about short-run and long-run marginal cost is true?
A. Long-run marginal cost equals short-run marginal cost at 50 units of output.
B. Long-run marginal cost equals short-run marginal cost at 130 units of output.
C. Long-run marginal cost equals short-run marginal cost at 160 units of output.
D. Long-run marginal cost and short-run marginal cost are never equal.