As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect.
B) proves that the fax machine is an inferior good.
C) proves that the fax machine is a luxury good.
D) is an example of a positive network externality.
E) is an example of a negative network externality.
D
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An objective analysis of "what is" in the economy is referred to as
A) positive economics. B) normative economics. C) command economics. D) implicit economics.
Paying a wage to an employee that is lower than the employee's marginal revenue product is sometimes referred to as
A) illegal in most states. B) monopolistic exploitation. C) monopsonistic exploitation. D) total exploitation.
Which of the following are depository institutions?
A. Pension funds B. Insurance companies C. Credit unions D. Mutual funds
Ava buys a $2,000 computer using a paper check. At which step does $2,000 get recorded in M1?
A. When Ava hands the $2,000 check to the computer merchant. B. Once the Federal Reserve sends the paper check (or an electronic image) to Ava's bank. C. The check is never M1. The $2,000 is M1 both in Ava's bank account and, later, in the merchant's account. It is the deposit balance that is counted. D. Once the $2,000 is credited to the merchant bank's reserve account and is debited from Ava's bank account.