An asset for a commercial bank is its loans
a. true
b. false
Ans: a. true
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What issue is there regarding housing and the measurement of GDP?
A) residential investment is measured using current house prices, not construction prices. B) houses are a capital and a consumption good. C) one does not know whether a house will be owned or rented when it is built. D) mobile homes are not counted.
Almost half of all spells of unemployment end when the unemployed person __________
Fill in the blank(s) with correct word
The fact that not everyone places all of his/her savings in U.S. Treasury bonds indicates that:
A. most investors are not risk averse. B. most people are risk-neutral. C. many investors are actually risk seekers. D. even risk-averse people will take risk if they are compensated for it.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,
A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.