Market participants are likely to save a portion of current income if they
A. Believe that banks might fail.
B. Place a higher value on current consumption than on future consumption.
C. Place a higher value on future consumption than on current consumption.
D. Believe that money will lose much of its value in the future. In deciding to save rather than spend, people effectively reallocate their spending over time. That is, people save now in order to spend more in the future.
Answer: C
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The function of money that helps assess the opportunity cost of an activity is money's use as a
A) barter tool. B) store of value. C) medium of exchange. D) store of debt. E) unit of account.
A budget deficit occurs when government receipts exceed government spending
a. True b. False Indicate whether the statement is true or false
We say that money is a store of value because it represents:
A. a standard unit of comparison. B. a certain amount of purchasing power held over time. C. something you can directly offer, like any good or service, in exchange for some good or service you want. D. something you can use to purchase goods and services.
All of the following are sources of comparative advantage except
A) climate and natural resources. B) relative abundance of labor and capital. C) a strong foreign currency exchange rate. D) technology.