When Marietta chooses to only purchase a combination of goods that lie within her budget line, she:
A. is decreasing utility.
B. likely has negative savings.
C. must reduce the quantity.
D. is maximizing utility.
Answer: D. is maximizing utility.
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The asset demand for money is related to the function of money called
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
The Williams' household uses natural gas heat, the Reynolds' use a wood stove. Whose household heating system is most efficient?
A) Without more information, the question is meaningless. B) Williams' C) Reynolds' D) It depends only on the BTU's (the amount of heat produced) per unit of heat-source input.
Economists typically define money as:
A. anything in which its value can be inflated. B. a means of payment that lacks intrinsic value. C. currency that is issued by a central bank. D. a widely accepted means of payment.
The concept of the liquidity trap was formulated by _____________.
Fill in the blank(s) with the appropriate word(s).