Which of the following is an example of spending on factors of production in the circular flow model?
A) Carolina has her nails done before her 20th high school class reunion.
B) Giorgio buys snow cones for his youth soccer team after each game.
C) Stevie trades in his old cell phone for a newer model.
D) Arlisha purchases a cotton candy machine for her concession stand at the state fair.
Answer: D
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If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account, then initially, M1 will ________ and M2 will ________
A) increase; decrease B) increase; not change C) not change; not change D) not change; decrease
Which of the following is NOT a characteristic or focus of microeconomics?
A) individual consumers. B) analysis of aggregate economic variables C) firm behavior D) individual markets
The Federal Reserve System was created by act of Congress in 1931 in an effort to end a wave of bank failures brought on by the Great Depression
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. The shape of a demand curve is ultimately determined by the underlying choices about maximizing utility subject to a budget constraint. 2. For someone to determine the labor-leisure choice that will maximize her utility, she must place numerical values on the total and marginal utility that she would receive from every level of income and leisure. 3. The United States has higher rates of domestic savings as a percentage of gross domestic product than do China and Russia. 4. Even though a business pays income taxes based on its accounting profit, whether it is economically successful depends on its economic profit.