Asset that is easily and cheaply turned into cash-notably, cash itself and short-term securities are known as______________?
Correct answer: A. Liquid asset
- A. Liquid asset
- B. Solid asset
- C. Hard asset
- D. None of these
Explanation
A liquid asset can be converted into cash quickly and with little loss in value, making cash and short-term securities typical examples. Liquidity refers to ease of conversion, not whether an asset is physically hard or solid.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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