How do individuals spending their own money behave differently than those spending someone else's money?
a. Money is money. It does not matter whose it is, you spend it the same way.
b. Individuals spending their own money look for the best value given the price.
c. When spending someone else's money, individuals are concerned about getting the best deal so the money will go farther.
d. Individual behavior is unpredictable. It is anyone's guess what will happen.
b. Individuals spending their own money look for the best value given the price.
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When the quantity of capital increases, then the
A) LAS curve shifts rightward and the SAS curve does not shift. B) SAS curve shifts rightward and the LAS curve does not shift. C) SAS curve shifts rightward and the LAS curve shifts rightward. D) SAS curve shifts rightward and the LAS curve does shifts leftward.
International capital flows in an open economy have the effect of
a. reducing the power of monetary policy. b. increasing the power of monetary policy. c. increasing the power of monetary policy in an expansion and reducing it in a contraction. d. reducing the power of monetary policy in an expansion and increasing it in a contraction.
The Great Depression was characterized by:
A. the Roaring Twenties. B. accelerated economic growth. C. unemployment exceeding 25 percent. D. firms rapidly expanding their borrowing rates.
Which of the following is considered an advantage of a sole proprietorship?
A) easy to raise large sums of capital B) limited liability for owner C) profit taxed only once D) permits effective specialization