Which of the following illustrates the store-of-value function of money?
A) writing a check to buy a new Volkswagen
B) noting that the price of a $20,000 Volkswagen is 16,000 euros
C) agreeing to repay a bank $400 a month for the next 48 months for a loan to buy a new Volkswagen
D) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
Ans: D) keeping $20,000 in cash in your mattress instead of buying a new Volkswagen
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The sum of the components of incomes is called
A) gross domestic product at factor cost. B) net domestic product at market prices. C) gross domestic product at market prices. D) GNP. E) net domestic product at factor cost.
If the market price is at equilibrium, the deadweight loss is maximized
Indicate whether the statement is true or false
Refer to Table 10-1. If Keegan can drink all the bubble tea he wants for free, how many glasses will he consume?
A) 4 glasses B) 5 glasses C) 6 glasses D) 7 glasses
For the monopolistically competitive firm,
a. competition is blocked by barriers to entry b. limit pricing can forestall competition indefinitely c. marginal revenue is less than the product's price d. price discrimination is a key tool e. marginal revenue is equal to the product's price