Define money and list its functions
What will be an ideal response?
Money is any commodity or token that is generally accepted as a means of payment. It has three main functions. It serves as a medium of exchange, a unit of account, and a store of value.
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If government expenditure on goods and services increase by $10 billion, then aggregate demand
A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) decreases by $10 billion multiplied by the government expenditure multiplier. D) decreases by $10 billion. E) increases by $10 billion multiplied by the tax multiplier.
The concept of "the invisible hand" suggests that
A) products are produced out of a seller's sense of charity. B) when the seller is better off, the buyer is worse off. C) sellers exploit consumers with high prices. D) buyers and sellers are self-interested. E) the command system is the only way of efficiently allocating resources.
Consumer surplus in a market for a product would be equal to the area under the demand curve if
A) the product was produced in a perfectly competitive market. B) marginal cost was equal to the market price. C) the market price was zero. D) producer surplus was equal to zero.
Answer the following statement(s) true (T) or false (F)
1. A systems approach to the flow of materials and energy between industrial processes and the environment is known as a life cycle assessment. 2. Industrial ecology and sustainable development are equivalent concepts. 3. Residuals are quantities of pollutants left in the environment after some natural or technological process has occurred. 4. A linear flow of materials assumes that materials move in a single direction, entering as inputs and leaving as residuals. 5. A closed flow of materials is one in which residuals are returned to the production process.