The choice to hold money in the form of cash
A. Has no opportunity cost.
B. Results in greater outstanding debt.
C. Results in forgone interest.
D. Results in increased interest income.
Answer: C
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Suppose your bank pays you 5 percent interest per year on your savings account. If prices increase by 5 percent per year over that time, approximately how much real value do you gain by keeping $100 in the bank for a year?
A) $0 B) $1 C) $3 D) $6
Refer to above figure. In the absence of a tariff and in the presence of trade, what is the country's consumer surplus?
What will be an ideal response?
The intended use of TARP funds was to
a. support the FDIC. b. increase consumers' disposable income. c. fund "shovel-ready" projects. d. purchase unwanted securities.
The three questions every economic system must answer must include which of the following?
a. Where the goods and services should be produced? b. What goods and services should be produced? c. Who should produce the goods and services? d. All of the questions must be answered for the economic system to work.