The transaction motive for holding money
A. varies inversely with income.
B. varies directly with the number of times one is paid annually.
C. are used to make expected expenditures.
D. are held for the same reasons that precautionary cash balances are held.
C. are used to make expected expenditures.
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The United States' official measure of poverty is measured by
A. only cash income. B. cash income and capital gains. C. only in-kind income. D. the imputed value of rent payments.
An L-shaped isoquant
A) is impossible. B) would indicate that the firm could switch from one output to another costlessly. C) would indicate that the firm could not switch from one output to another. D) would indicate that capital and labor cannot be substituted for each other in production. E) would indicate that capital and labor are perfect substitutes in production.
Compared to perfect competition, a monopolistically competitive market will produce ________ output and charge a ________ price
A) more; higher B) more; lower C) less; higher D) less; lower
For the price in a market to remain the same, while the quantity traded fell, both supply and demand would have to shift to the left
a. True b. False Indicate whether the statement is true or false