As people's income rises, they wish to
A. hold less money for transactions.
B. spend less.
C. hold more money for transactions.
D. invest only in stocks.
Answer: C
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During the peak season, when demand for pipeline transport of natural gas at the maximum legally allowable price exceeds the available capacity:
a. buy-sell transactions take place. b. pipeline owners vertically integrate into gas production. c. price discrimination becomes prominent. d. pipeline owners use discretionary powers to ration capacity to shippers.
As applied to labor demand, the marginal approach to profit
a. is irrelevant b. requires setting marginal cost equal to the wage rate c. requires setting marginal revenue equal to the wage rate d. says that a firm should increase employment if doing so adds more to revenue than it adds to cost e. says that a firm should decrease employment if doing so adds more to cost than it adds to revenue
Traditionally, men have been more willing to accept jobs that
a. required continuous employment in the labor force. b. require relocation if necessary to get a higher paying job. c. have long working hours. d. All of the above are correct.
Because of the circular flows of expenditure and income in the economy, total ________ equals total ________ equals total ________
A) expenditure; investment; income B) expenditure; income; value of production C) consumption; expenditure; value of production D) investment; income; consumption E) consumption; investment; expenditure