The two most important actors of the economy are:
A. firms and -capital.
B. exports and imports.
C. households and firms.
D. land and capital.
Answer: C
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Money serves as a
A) medium of exchange, unit of account, and store of value. B) means to conduct barter transactions. C) means of payment, legal obligation, and public tax. D) means of worker exploitation and capitalist enrichment. E) means of settling debts, transaction lubricant, and private commodity.
Creative destruction
What will be an ideal response?
Melissa purchases shares in a government bond mutual fund. Is this included in the aggregate demand component “Investment”?
A. Yes, if it is a domestic mutual fund. B. Yes, if the purchase is made out of current income. C. No, unless the funds are deposited in a domestic financial institution. D. No, it would never be included.
In the long run, a profit-maximizing monopolist
a. earns zero economic profit. b. produces the same amount as a perfectly competitive industry. c. receives a higher price for his output than a perfectly competitive firm. d. produces at the output level that minimizes his long-run average total cost.