When Dale buys a new computer for $1,000 using a credit card,
A) his bank account decreases by $1,000.
B) he is taking out a loan for $1,000.
C) the credit card is acting as money.
D) the money supply decreases by $1,000.
E) the credit card is performing the function of an unit of account.
B
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The unemployment rate measures, at a point in time, the ________
A) percentage of workers who do not have a job B) percentage of workers who do not have a job but are looking for work C) percentage of workers who stop working D) percentage of workers who are looking for work E) none of the above
If this game is played once, then
a. Firm A will charge a lower price and firm B will charge a lower price b. Firm A will charge a higher price and firm B will charge a lower price c. Firm A will charge a lower price and firm B will charge a higher price d. Firm A will charge a higher price and firm B will charge a higher price
A bank allows us to diversify risk because it has a:
A. big pool of borrowers and savers, so the risk of repayment is spread among many. B. small amount of borrowers, but many savers, so it can combine savings to make larger loans. C. small amount of borrowers and savers, so it can connect the optimal saver to the best-matched borrower. D. big pool of borrowers, but not many savers, so it can choose the riskiest person to borrow from.
Related to the Economics in Practice on p. 573: According to the study cited in the Economics in Practice, which of the following is not true?
A. The study used a longitudinal survey done by the Census Bureau. B. The researches found considerable evidence of wage stickiness. C. Until recently it has been hard to find the right data to answer the question of wage stickiness. D. To verify the sticky wage assumption the researchers looked at averages wages over time.