As of 2013,the Outstanding U

question 56

Multiple Choice

As of 2013,the outstanding U.S.currency is more than $1 trillion,which suggests that the typical U.S.citizen holds $3,600 in cash.Is this an accurate inference? Why?

• A)Yes;because dividing total currency by total U.S.population roughly works out to $3,600 per person.
• B)No;because criminals and foreigners hold large sums of dollars,so the average citizen holds far less.
• C)No;because the average citizen probably does not have $3,600 in her checking account.
• D)Yes;because the Fed rarely makes accounting mistakes when computing M1.
• E)none of the above

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Definitions:

Utility-Maximizing

A principle of economics that assumes consumers aim to achieve the highest level of satisfaction possible from their available resources.

Total Product Curve

A graph that shows the relationship between the quantity of inputs used in production and the quantity of output generated, illustrating how output changes with input variations.

Marginal Cost Curve

The marginal cost curve illustrates how the expense of producing one additional unit of a good changes as more goods are produced, typically upward sloping due to increasing costs.

Cost of Production

Refers to the total expenses incurred in the manufacture of goods or services, including raw materials, labor, and overhead costs.