Why is money considered to be debt?
What will be an ideal response?
The major parts of the money supply are currency and check able deposits. These items are debts, or promises to pay. Paper money is the circulating debt of the Federal Reserve banks. Check able deposits are debts of commercial banks and thrifts. Neither the currency nor check able deposits have any intrinsic value. They are simply circulating paper to which people must attach value.
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Perfectly competitive markets are:
A. the most common type of market in our economy. B. hard to find in a real world setting. C. made up principally by consumer goods. D. typically found in industrial sectors of our economy.
Which of the following is an example of a producer taking advantage of economies of scope?
a. A farmer buys more land so he can produce more soybeans. b. GM closes a Chevy truck plant in response to a decline in the demand for trucks. c. Disney World stays open later to serve more customers per day. d. A dairy farmer produces cow's milk and butter. e. A mouthwash firm expands production by improving management efficiency.
Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to
a. raise productivity. Other things the same, this increase will be larger in a poor country. b. raise productivity. Other things the same, this increase will be larger in a rich country. c. reduce productivity. Other things the same, this decrease will be larger in a poor country. d. reduce productivity. Other things the same, this decrease will be larger in a rich country.
The demand curve an individual competitive firm faces is known as its
A) excess demand curve. B) market demand curve. C) residual demand curve. D) leftover demand curve.