Keynes called the money people hold in order to pay unforeseen or unexpected expenses the:
A. transactions demand for holding money.
B. precautionary demand for holding money.
C. speculative demand for holding money.
D. store of value demand for holding money.
Answer: B
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Two countries, Alpha and Beta, have identical production possibilities frontiers illustrated above. If Alpha produces at point a and Beta produces at point b, then ________
A) Beta's economic growth rate will exceed Alpha's B) Alpha consumes less than Beta today, but it will grow faster than Beta C) Alpha's and Beta's economic growth rates will be the same D) Beta's future consumption will be greater than Alpha's
Because these securities are more liquid and generally have smaller price fluctuations, corporations and banks use the ________ securities to earn interest on temporary surplus funds
A) money market B) capital market C) bond market D) stock market
A change that increases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and shifts it to the ________.
A) increases; left B) decreases; left C) decreases; right D) increases; right
Specialized task assignment's greatest cost is ignoring the foregone ________ across tasks.
A. lower cross-training costs B. complementarities C. flexibility D. comparative advantage