The Rule for Making Sound Economic Decisions Is That One

question 77

Multiple Choice

The rule for making sound economic decisions is that one should choose the alternative with the

• A)highest contribution margin
• B)lowest opportunity cost
• C)lowest sunk costs
• D)highest revenue

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Definitions:

M2

An indicator of the total money available within an economy that encompasses physical currency, funds in checking accounts, and assets closely resembling cash, like savings accounts and investments in money markets.

Demand Deposits

Bank accounts that allow the holder to withdraw funds without advance notice, often used for day-to-day expenses.

Federal Reserve Bank

One of the 12 regional banks of the Federal Reserve System, each serving a specific geographic area of the United States, involved in banking and monetary policy.

First Bankers

Early financial intermediaries who accepted deposits, facilitated loans, and created ways to transfer wealth across great distances.