When a person holds money, they give up
A. the pleasure associated with spending money.
B. the interest that could have been earned if the money had been changed into an interest-bearing asset.
C. the pleasure associated with saving money.
D. nothing, since the person can always use the money to buy goods or services or interest-bearing assets.
Answer: B
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One source of structural unemployment is ________
A) the seasonal character of production in some industries, e.g. agriculture in Alaska during winter months B) falling sales in an economic downturn C) wage rigidity D) high search costs
Indicate whether the following transactions would be included in GDP. If they are included, indicate which component (consumption, investment, government consumption and gross investment, or net exports) of GDP would be affected
a. A Czech student attending school in Florida takes a summer job as a lifeguard. b. A New York company buys welding equipment from a St. Louis firm to help it build jet fighters. c. The IRS purchases a new computer from the GATS computer company (an American-owned business producing and operating in Germany) that will allow it to better detect income tax evasion.
Retired individuals:
a. Are always harmed by inflation. b. Are almost always helped by inflation. c. Could be helped (or, at least, not hurt) by inflation if their assets rise in value. d. Are helped by inflation when it is unexpected. e. Are harmed by inflation when it is expected.
Derivatives are financial instruments that:
A. present high levels of risk and should only be used by the wealthy. B. should only be used by people seeking high returns from low risk. C. represent the outright purchase of a bond. D. when used correctly can actually lower risk.