How do rising prices slow resource depletion?
Three ways: reduce consumption (conservation), reduce use of the input into production, and encourage innovation. Higher oil prices led to better insulated homes, thus reducing consumption. Firms substantially reduced the energy intensity of their factories. Higher energy prices make solar and other energy alternatives more feasible.
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The asset demand for money is related to the function of money called
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
When people are considered risk averse, they:
A. generally have a low willingness to take on risk. B. generally have a high willingness to take on risk. C. will only participate in low-risk activities. D. will never accept risk in any situation.
Look at your dollar bill. Is it crisp and unmarred or old, wrinkled, and bent? The difference has much to do with the number of times that poor dollar has had to work during the year. Economists refer to that number as the
a. quantity theory of money b. velocity of money c. equation of exchange d. reproduction rate of money e. expenditure rate of money
Which of the following is true?
A. The United States spends more as a percentage of GDP than any other nation on foreign aid. B. The largest federal government purchase of goods and services is Social Security. C. Government purchases, but not transfer payments, are counted in Gross Domestic Product (GDP). D. Net interest on the national debt is only one percent of total federal government spending.