The difference between M1 and M2 is given by which of the following?
A. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver.
B. M1 is made up of currency and money in checkable accounts, whereas M2 contains M1 plus savings deposits and time deposits.
C. M1 is limited to currency, whereas M2 contains M1 plus money in checkable accounts.
D. M1 includes currency, whereas M2 contains M1 plus money in checking accounts.
Answer: B
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In the resource market
A. businesses sell services to households. B. businesses borrow financial capital from households. C. households buy resources from businesses. D. households sell resources to businesses.
When firms in an oligopoly successfully collude and do not cheat on a cartel agreement, they can achieve long-run economic profit similar to
A) perfect competition. B) monopoly. C) monopolistic competition. D) non-colluding oligopolies. E) the firms in regulated industries.
The monopolist's supply curve
A) doesn't exist. B) is the region of its marginal cost curve above average cost. C) is identical to the demand curve. D) is the region of its marginal cost curve that lies above the marginal revenue curve.
The output effect of a change in the wage rate on a firm's demand for labor input will be greater:
a. the larger the share of labor costs in total costs and the greater the price elasticity of demand for output. b. the larger the share of labor costs in total costs and the smaller the price elasticity of demand for output. c. the larger the share of labor costs in total costs and the higher the quantity demanded. d. the smaller the possibilities of substituting capital for labor.