The difference between money and income is that whereas income is an individual's
A) flow of earnings over a period of time, money is an individual's stock of currency and currency substitutes.
B) stock of all assets, money is an individual's stock of currency and currency substitutes.
C) flow of earnings over a period of time, money is an individual's stock of all assets.
D) stock of currency and currency substitutes, money is an individual's stock of all assets.
A
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Which of the following gives rise to a pecuniary externality?
A) Excessive consumption of alcohol leading to ill health B) Sudden increase in the demand for diamonds leading to an increase in their price C) Deforestation leading to the extinction of many species D) Globalization leading to the displacement of indigenous workers
If input costs remain the same as industry output expands, what would you expect to be the long-run impact of an increase in demand on an industry currently in long-run equilibrium? a. There will be more firms but the price will remain the same. b. There will be fewer firms but the price will remain the same. c. There will be more firms and the price will increase
d. There will be fewer firms and the price will decrease.
The transactionary demand for money is
(a) An active balance. (b) Directly related to interest rates. (c) Negatively related to income. (d) An idle balance
Sally's Sandwiches produces sandwiches using one variable input-labor. Sally's Sandwiches is a ________ in the labor market and a ________ in the sandwich market.
A. consumer; producer B. consumer; consumer C. producer; producer D. producer; consumer