Which of the following is classified as an intermediate good?
i. the purchase of a Big Mac by a college student
ii. McDonald's purchase of pickles
iii. a McDonald's restaurant owner's interest payment for the loan on her building
A) ii only
B) ii and iii
C) i only
D) i and iii
E) i, ii and iii
A
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During periods of inflation, which function of money is most severely affected?
A) medium of exchange B) unit of account C) means of payment D) store of value
Which of the following might be an example of an economic argument against advertising?
a. It causes the demand for the good to be more elastic b. It allows the producer to earn an economic profit in the long run c. People may be deluded into thinking that a good with a brand name is better than an otherwise identical generic brand d. The claims made in the ads are almost always false
When the economy slows down:
A. firms contract their operations. B. GDP growth is slowing or negative. C. demand for workers decreases. D. All of these are true.
Which of the following is a common long-run response for a firm that is making a profit in the short run?
a. It will invest more resources in other firms. b. It will cut back the firm’s resources. c. It will invest more resources in the profitable process. d. It will keep allocation of the firm’s resources the same.