Alex has an income of $50 . She spends her entire money either on burgers or on cookies. If the price of a burger is $10 and the price of a cookie is $5, Alex can afford a consumption bundle of 3 burgers and 8 cookies
a. True
b. False
Indicate whether the statement is true or false
False
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Tobin's generalized portfolio approach to the demand for money is based on the assumption that
A) money is needed for transactions. B) all interest-bearing assets are risky. C) the levels of risk and return vary among assets. D) variations in wealth have little effect on asset demands.
The effect that a gift given to a U.S. citizen from a foreign resident will have on the balance of payments is to
A) increase the current account balance. B) have no effect on the balance of payments if the gift was made in the U.S. C) have no effect on the balance of payments if the gift was made by a foreign country. D) decrease the balance of payments.
A point outside the production possibilities curve represents a combination of goods that is:
a. inefficient. b. efficient. c. unattainable. d. attainable.
Types of Markets
What will be an ideal response?