The attribute that distinguishes money from other assets is that only money
A) retains its value during times of inflation.
B) is counted in determining the size of an individual's wealth.
C) serves as a medium of exchange.
D) may be used as collateral for a bank loan.
C
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Consumer surplus exists when
A) it costs less to produce goods than buyers must pay for them. B) consumers value the good more highly than what they must pay to buy it. C) taxes on goods are less than the appropriate amount. D) the marginal benefit of the good is always equal to or less than the price of the good. E) the price of the good is greater than the marginal cost of producing a unit of the good.
In the long run:
A. all factors of production are fixed. B. all factors of production are variable. C. some factors of production are variable, while at least one factor of production is fixed. D. None of these are correct.
Which of the following statements is false?
A) Microeconomics is the branch of economics that deals with human behavior and choices as they relate to relatively small units-an individual, a firm, an industry, and a single market. B) Macroeconomics is the branch of economics that deals with human behavior and choices as they relate to highly aggregate markets. C) Positive economics attempts to determine what is. D) Normative economics addresses what should be. E) Positive and normative economics both address what should be.
Given that Tamar is a risk-averse person, she might accept a bet with a 50 percent chance of losing $100 today if she had a 50 percent
a. chance of winning $120 in two years and the interest rate was 11%. b. chance of winning $114 in two years and the interest rate was 7%. c. chance of winning $110 in two years and the interest rate was 3%. d. None of the above are correct; a risk averse person would not accept any of the above bets.