Use the following graph for a competitive market to answer the question below.
In a market with supply and demand curves as shown above, a price floor of $2.50 will result in
A. a black-market price greater than $2.50.
B. a surplus of 10 units.
C. a shortage of 10 units.
D. no shortage or surplus.
Answer: B
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Kevin has a lot of free time and he decides to pick up a new hobby. He has two options—he can take art classes or can sign up for French cooking classes
He estimates that the art classes would cost him $70, and would provide him with a benefit of $100. On the other hand, the cooking classes would cost him $120, but provide him benefits worth $160. Use cost-benefit analysis to arrive at the optimum choice for Kevin.
One difference between the assets included in M1 and those added to calculate M2 is that items in M1 are
A. better stores of value than those added to compute M2. B. more liquid than those added to compute M2. C. less liquid than those added to compute M2. D. larger than those added to compute M2.