When a consumer wants to compare the price of one product with another, money is primarily functioning as a
A. medium of exchange.
B. checkable deposit.
C. store of value.
D. unit of account.
Answer: D
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If a worker was miscategorized as structurally unemployed when he was really frictionally unemployed, that would not change the natural rate of unemployment
a. True b. False Indicate whether the statement is true or false
The currency value of Agraria is set by government decree. Which of the following happens when the government alters the exchange rate so that its currency can buy more units of foreign currency?
a. Reflation b. Devaluation c. Appreciation d. Revaluation
Economic discrimination and prejudice
A. are synonymous. B. must both exist in statistical discrimination. C. often occur together. D. are mutually exclusive.
The story in your book about Austria and the nuclear power plants is a clear case of which of the following?
A. When externalities exist it is easy to negotiate an agreement between the offender and the offended party. B. When coal powered plants become offensive countries will switch to nuclear power in order to maintain political stability in a region. C. The story supports the claim of the Coase Theorem that the liability for actions should be placed on the side that has the lowest cost of correcting the problem. D. Political differences can sometimes override rationality, raising negotiation costs and making solutions difficult or impossible.