Modern paper money is fiat money because it is backed only by the faith the holder has in the government that issued it.
Answer the following statement true (T) or false (F)
True
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Cross-sectional data observed at several points in time is known as:
A) time series data. B) panel data. C) experimental data. D) none of the above.
A line is tangent to a curve if it
a. crosses the curve at one point b. touches the curve at one point, without crossing it c. crosses the curve at a minimum of two points d. never touches the curve e. forms a right triangle with the curve
During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
A. has no fixed costs. B. is in the short run. C. suffers an economic loss. D. earns a large profit.
Suppose an individual experiences a $20,000 increase in real income and the individual believes this increase in income is permanent. Economic theory suggests that this individual's current consumption will
A) remain unchanged. B) increase by more than $20,000. C) increase by at most $20,000. D) decrease or remain unchanged, depending on the value of the real interest rate. E) decrease, remain unchanged, or increase, depending on the value of the real interest rate.