A double coincidence of wants
a. is required when there is no item in an economy that is widely accepted in exchange for goods and services.
b. is required in an economy that relies on barter.
c. is a hindrance to the allocation of resources when it is required for trade.
d. All of the above are correct.
d
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Refer to the scenario above. The net present value of the investment in Plan 4 is equal to:
A) -$8,001. B) -$556. C) -$791. D) -$3,737.
In a store that sells souvenirs, suppose an agent receives a $1 commission for each unit sold, and the principal receives the residual profit. As a result
A) joint profit is maximized. B) the agent will sell until the principal's marginal cost equals $1. C) no agent would enter into such a contract. D) the agent wishes to sell as many units as he can.
The Navigation Acts required that colonists use England as an "entrepot.". This resulted in
a. additional shipping and handling costs for colonial trade. b. increased prices for colonial imports. c. a disproportionately large economic burden on Southern exports. d. an estimated total economic burden of less than 1 percent of colonial income. e. All of the above.
What does it mean to "think at the margin"? How is thinking at the margin related to determining best choices?
What will be an ideal response?