Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Stocks$5,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would decrease Jim's money demand by $200?
A. Jim writes a $200 check for cash and holds the cash.
B. Jim sells a $200 government bond and puts the proceeds in his checking account.
C. Jim writes a check for $200 to pay down his credit card balance.
D. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
Answer: C
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When voters pay taxes in proportion to the benefits they receive from government projects,
a. efficient projects will tend to be opposed by a majority of voters. b. inefficient projects will often be favored by a majority of voters. c. projects that are efficient will tend to be favored by an overwhelming majority of voters. d. democratic political decision making can be expected to work poorly.
The four-firm concentration ratio measures the:
A. percentage of total output in a market produced by the four largest firms. B. elasticity of demand of the four largest firms in an industry. C. average cost of the four largest firms in an industry. D. number of firms in an industry.
Queuing, or waiting in line, is an alternative rationing mechanism to price rationing.
Answer the following statement true (T) or false (F)