Why do individuals choose to hold part of their wealth in money rather than in other types of assets? Discuss the benefits and costs of holding money
Money is the most liquid of all assets and can be used directly for buying goods and services. The benefit from holding wealth in the form of money is the ability to buy goods and services. The cost of holding money is the nominal interest rate, an opportunity cost. A person who holds wealth in the form of money gives up the interest that could have been earned if the money had been placed in an interest-earning asset.
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What is a patent used for?
a) to disseminate information b) to restrict ownership c) to protect inventors for as long as they live d) to assign property rights
The voluntary export restraint that the United States negotiated with Japan:
a. violated provisions of the GATT that encouraged countries to avoid using quotas. b. exploited a loophole in the GATT because the quota was administered by the exporting country. c. did not allow U.S. auto producers to raise their prices. d. did not impose any deadweight losses on the United States