In economics, money is
A) a financial instrument backed by some precious metal such as gold or silver.
B) whatever the government defines it to be.
C) anything that people generally accept in exchange for goods and services.
D) another term for income.
C
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If, as a perfectly competitive industry expands, it can supply larger quantities only at a higher long-run equilibrium price, it is
A) a decreasing-cost industry. B) a fixed-cost industry. C) a constant-cost industry. D) an increasing-cost industry.
While deposit insurance was designed to make the banking industry more stable, it contributed to the banking crisis of the 1980s because: a. the FDIC only insured commercial banks
b. the ceiling on insured deposits was too low. c. too many banks were insufficiently insured. d. depositors became too complacent about the risks that the banks were taking. e. unsafe banks were "kicked out" of the deposit insurance system.
In 1991, the base year, you were earning $350/week. Your wages rose to $450 in 2000, the current year, when the Consumer Price Index stood at 135. What statement can you make about what happened to your real wages over this period?
A. They rose. B. They fell. C. They remained the same. D. There is not enough information to determine whether they rose, fell, or remained the same.
Which of the following would be included in the calculation of GDP?
a. an antique diamond necklace b. a new toaster c. a second-hand dress d. a mint condition 1940 baseball card