Answer the following statements true (T) or false (F)
1. In the United States, all money is essentially the debt of the Fed, commercial banks, and thrift institutions.
2. The currency held in the vaults of commercial banks is included in the money supply M1.
3. Debit card balances are part of money supply M1, but credit card balances are not.
4. Using a debit card is like writing a check; the amount will be deducted from one's checking account.
5. The value (or purchasing power) of money increases when the price level increases.
1. True
2. False
3. True
4. True
5. False
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The firm described in Table 8-1 has a fixed cost of ____ at its optimal level of output.
A. 2 B. 6 C. 10 D. 26
Suppose the court system begins to make it easier for plaintiffs to win large payments from doctors and other medical professionals who are accused of malpractice. What result would you expect?
A. Doctors would order more diagnostic tests and treatment procedures even when the costs of those procedures exceed the benefits to the patient. B. Claims on medical insurance plans would probably fall. C. The cost of medical care would fall because doctors would avoid expensive tests and treatments. D. More people would seek training to become medical professionals because they would be able to make more money ordering tests and treatment procedures.
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00If the corn was grown and the jar of popcorn produced in the year 2017, but the jar was sold at Friendly Groceries in the year 2018, what is the contribution of these transactions to GDP in the year 2018?
A. $1.50 B. $0.00 C. $0.50 D. $4.00
A perfect price discriminator
A) charges each buyer her reservation price. B) charges different prices to each customer based upon different costs of delivery. C) generates a deadweight loss to society. D) charges lower prices to customers who buy greater quantities.