An economist might say that people choose not to get a college degree because they may have to borrow money to go to college, and the interest they have to pay on that loan in the future will affect their decisions today. This is an example of which kind of statement?
a. positive statement
b. normative statement
c. trade-off statement
d. allocative statement
a. positive statement
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A normal good is one
A) with a downward sloping demand curve. B) for which demand increases when the price of a substitute rises. C) for which demand increases when income increases. D) none of the above
In a common-value setting
a. Oral auctions tend to return higher prices b. Sealed bid auctions tend to return higher prices c. Vickery auctions tend to return higher prices d. Rotating bid auctions tend to return higher prices
A monopolist can charge any price it wants to for a product, because it has no competitors. What constrains price for a monopoly?
a. Demand b. Copyright c. Quality d. Quantity
Excess reserves are important to bankers because:
a. They are typically deposited in special high-yielding investment accounts. b. They represent the funds that can be used to acquire income-producing assets, such as loans and securities. c. They indicate the profits that are divided among the financial institution's owners. d. They indicate profitable banking practices. e. If they are not maintained, banking regulators may shut down the bank.