When you have $1,000 in a savings account at a bank:
A. both you and the bank now have a financial asset of $1,000.
B. the bank holds a financial asset of $1,000 and you hold a financial liability of $1,000.
C. both you and the bank now have a financial liability of $1,000.
D. the bank holds a financial liability of $1,000 and you hold a financial asset of $1,000.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. If the consumer chooses not to purchase potatoes, then the marginal value of potatoes must be less than or equal to the relative price of potatoes. 2. The steeper the indifference curve, the greater the marginal value of a good. 3. If a person is willing to trade one good for another, their new basket after the trade must lie on a lower indifference curve than their original basket. 4. Along a convex indifference curve, the marginal value of a good rises as the quantity of the good rises. 5. When using the composite good convention all other goods are measured in terms of dollars.
Hold the prices of goods, as well as Amy’s preferences, constant. If Amy’s income increases, then
a. both her indifference curves and budget constraint change. b. her indifference curves change, but her budget constraint does not change. c. her budget constraint changes, but her indifference curves do not change. d. neither her indifference curves nor her budget constraint change.
Generally with bond ratings, the lower the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default
A) lower; lower B) higher; lower C) higher; higher D) lower; higher
International trade
A. benefits consumers but harms producers. B. can only take place if a nation has a special natural endowment for the production of a good. C. will occur if a nation has a comparative advantage in the production of a good. D. represents trade between two governments.