Transactions deposits include
A. checkable and debitable accounts.
B. credit cards.
C. certificates of deposit.
D. lines of credit.
Answer: A
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Keynesians would argue that:
a. information is inherently limited. d. individuals have limited ability to process information when making decisions. c. people often make mistakes even with appropriate information. d. all of the above. e. none of the above.
A consumer is given the chance to buy a concert ticket for $50 and refuses. Later, that same consumer wins a free ticket to the concert
When asked to sell that ticket for $50, the consumer refuses, indicating that he would rather use the ticket himself. This is an example of A) endowment effect. B) salience. C) framing bias. D) irrational behavior.
In a constant-cost industry, an increase in demand will be followed by
A) no increase in supply. B) an increase in supply that will not change price from the higher level that occurs after the demand shift. C) an increase in supply that will bring price down to the level it was before the demand shift. D) an increase in supply that will bring price down below the level it was before the demand shift. E) a decrease in demand to keep price constant.
The difference between absolute and comparative advantage is that:
a. absolute advantage refers to input cost, while comparative advantage refers to opportunity cost. b. absolute advantage refers to opportunity cost, while comparative advantage refers to input cost. c. absolute advantage refers to individuals, and comparative advantage refers to countries. d. absolute advantage refers to countries, and comparative advantage refers to individuals. e. absolute advantage is applicable to intranational trade, while comparative advantage applies to international trade.