Money is a ________ and a transaction is a ________.

Which of the following statements is true about advertising by a monopolistically competitive firm?

A) Since the monopolistic competitor, like the perfect competitor, makes zero profit in the long run, it is a waste of resources to advertise its products. B) Advertising could make the monopolistic competitor's demand more inelastic, but advertising has no effect on a perfect competitor's demand. C) Monopolistically competitive firms tend to shun advertising because advertising draws attention to the variety of differentiated products available in the industry. D) Advertising will be more beneficial if a monopolistic competitor colludes with other firms to advertise the products of the industry as a whole rather than an individual firm's product.

Forward transactions would be useful to

A) a government wanting to know the size of its future debt. B) a household wanting to reduce its future tax liability. C) a business wanting to know the cost of its funds on future loans. D) a business wanting to expand its operations in overseas markets.

In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

A. higher prices. B. lower prices. C. lower output. D. None of these is true.

In events leading to the collapse of the housing bubble, inflated home values caused consumers to:

A. spend less and save more. B. hold their savings to equity in their homes and stop saving more liquid forms of assets. C. save less and spend more. D. spend more on homes and less on all other goods.