Economists believe that as a saver's wealth increases, the saver will generally
A) increase his or her holdings of all assets proportionately.
B) increase the fraction of wealth held as cash.
C) increase the fraction of wealth held as common stock.
D) decrease the fraction held as corporate bonds.
C
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Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8
If price is equal to $9 per unit then the quantity demanded in the market will be ________ and the consumer surplus for this unit will be ________. A) 3; $10 B) 3; $37 C) 3; $36 D) 4; $8
The United States would gain from the elimination of tariffs and quotas even if other countries do not reduce their tariffs and quotas
Indicate whether the statement is true or false
Other things constant, the quantity of money demanded varies inversely with the:
a. exchange rate. b. commercial loan rate. c. discount rate. d. market interest rate.
Which of the following statements is a normative?
a. The price of gasoline is rising b. The price of gasoline is too high c. Gas prices are expected to fall in the near future d. Cars can run on gasoline, electricity, or diesel fuel e. When the price of gasoline rises, drivers buy less gasoline