List and define the three functions of money
What will be an ideal response?
The three functions of money are a medium of exchange, a unit of account, and a store of value. A medium of exchange is an object that is generally accepted in exchange for goods and services. A unit of account is an agreed upon measure for stating the prices of goods and services. A store of value is anything that can be held and later exchanged for goods and services. Money serves all three of these functions.
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In Sioux Falls, South Dakota, there are many pizza restaurants, each offering similar types of pizza but each restaurant is located in a different place around the city. It is likely a pizza restaurant in Sioux Falls, South Dakota, operates in a(n):
A. perfectly competitive market. B. monopolistically competitive market. C. monopoly market. D. oligopoly market.
Figure 8.12 shows a demand and costs of an unregulated monopoly. At the profit maximization output, the firm earns a profit of:
A. $0. B. $10,000. C. $50,000. D. $80,000.
Hedonic pricing is
A) the way that luxury goods are priced in a market economy. B) the tendency for the inflation rate to rise by greater and greater amounts. C) the tendency for nominal GDP to rise when the price level rises. D) the process of translating nominal GDP into real GDP. E) the process of pricing individual characteristics of a good or service.
"Economics is the study of how people eliminate scarcity." Do you agree or disagree? Why?
What will be an ideal response?