Which of the following is not correct about the money kept in transactions accounts?

A. It is backed by gold held by the government.
B. It is part of the basic money supply.
C. It permits direct payment to a third party.
D. It is a good substitute for cash in many cases.


Answer: A

Economics

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Which of the following is an example of an intermediate good?

A. A new CD player sold to a teenager B. A new CD player sold to an automaker for installation in a car C. A metal-stamping machine used to produce cars sold to an automaker D. A new car sold to a family

Economics

Skateboards are produced according to the production function, q = 10K0.25L0.5 - L. Given that capital is fixed at 16 units in the short run, what quantity of labor is needed to produce 36 units of output?

A) L = 4 B) L = 2 C) L = 25 D) L = 16

Economics

If the AD curve shifts rightward, then

A) both the price level and real GDP will decrease. B) both the price level and real GDP will increase. C) the price level will increase, but no change will occur in real GDP. D) the price level will not change, but real GDP will increase. E) potential GDP increases.

Economics

The term "bottleneck" refers to

a. when increasing amounts of variable inputs must share a fixed input. b. "fixity" of some factor of production c. None of the above d. Both a and b

Economics