Which of the following provides the best explanation of why money is valuable?
A. Money is valuable because it is indivisible.
B. Money is valuable because it is scarce.
C. Money is valuable because it is backed by precious metals, primarily gold and silver.
D. Money is valuable because it has intrinsic value, independent of its use as a means of exchange.
Answer: B
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Refer to Table 2-19. What is Betty's opportunity cost of making a bench?
A) 2 statues B) 1/2 of a statue C) 2.8 statues D) 1.75 benches
In a pure market economy,
A. there is no role for government. B. government intervention might be needed. C. large markets where people meet to buy and sell are required. D. all of these answer options are correct.
Suppose that Canada decides to peg its dollar ($C, or the loonie) to the U.S. dollar at an exchange rate of $C1 = $US1. What is likely to happen to U.S. GDP following the leftward shift of its IS curve?
A) It will rise. B) It will fall. C) It will not change. D) It will rise dramatically.
During the Great Recession the fiscal policy measures taken to exit the recession was
A. raise taxes and run budget deficits. B. raise taxes and run budget surpluses. C. lower taxes and run budget surpluses. D. lower taxes and run budget deficits.