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TIME DEPOSITS: Interest-paying bank accounts maintained by traditional commercial banks, credit unions, savings and loan associations, and mutual savings banks with a minimum time (at least seven days) before deposited funds can be withdrawn. Time deposits come in one of two varieties: (1) savings deposits and (2) certificates of deposit. The minimum time period prevents these accounts from functioning as demand deposits and being widely used as money. Time deposits, along with money market mutual funds, are added to M1 to derive M2.
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Lesson 1: Economic Basics | Unit 3: The Economy
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Page: 8 of 18
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Topic:
A Mixed Economy: Markets and Government
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Markets do an effective (and efficient) job of answering the three questions of allocation--most of the time.- Markets are the VOLUNTARY exchange of goods and services.
- A pure market economy is an economy that uses nothing but markets to allocate resources.
- A pure market economy is a useful theoretical benchmark.
Market responses to the allocation questions:- What? Resources are used to produce goods with the highest prices.
- How? Goods are produced using the combination of resource with the lowest prices.
- For Whom? People with more income buy more goods.
Government also helps answer the three questions of allocation.- Government allocation is INVOLUNTARY. It sets the laws and rules.
- A pure command economy is an economy that uses nothing but government to allocate resources.
- A pure command economy is another useful theoretical benchmark.
Government responses to the allocation questions:- What? When government spends taxes, it dictates what goods will be produced.
- How? Government has laws and rules that specify how resources will be used to produce goods.
- For Whom? Government collects taxes from some people and distributes them among other people.
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MARGINAL COST OF SEARCH The incremental cost incurred by additional search effort is the marginal cost of search. Marginal cost of search, also termed marginal search cost, is comparable to marginal cost of short-run production analysis. Marginal cost of search increases with an increase in search effort and is represented by the marginal cost of search curve. This is one half of the efficient information search decision. The other is marginal benefit of search.
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time lost in your local discount super center trying to buy either a box of multi-colored, plastic paper clips or several orange mixing bowls. Be on the lookout for telephone calls from long-lost relatives.
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This isn't me! What am I?
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Two and a half gallons of oil are needed to produce one automobile tire.
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"Concentrate all your thoughts upon the work at hand. The sun's rays do not burn until brought to a focus." -- Alexander Graham Bell, inventor
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EFTA
European Free Trade Association
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