What is the central role of financial intermediaries in a market economy?
A) the creation and printing of money
B) keeping the price level stable
C) bringing together savers and borrowers
D) providing safe deposit boxes for people and businesses
Answer: C
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Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Alice's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Alice is indifferent between the two candidates. D) Alice definitely does not like either candidate.
Refer to Figure 7-2. At the efficient equilibrium
A) economic surplus is zero. B) economic surplus is negative. C) economic surplus is minimized. D) economic surplus is maximized.
The extra cost that results from carrying out one additional unit of an activity is the ________ of the activity.
A. marginal cost B. reservation cost C. opportunity cost D. marginal benefit
If workers received a 5 percent wage increase and the rate of inflation was 3 percent, then their real wage:
A. remained constant. B. equaled the nominal wage. C. decreased. D. increased.