Barbara just purchased a television using cash. This is an example of which function of money?
a) Barter
b) Medium of exchange
c) Unit of account
d) Store of value
Ans: b) Medium of exchange
You might also like to view...
Why would it be a mistake to treat opportunity costs and explicit monetary costs as identical?
a. Because sometimes the market does not function well. b. Because opportunity costs are different for different goods. c. Because there are trade-offs involved in any decision. d. Because of existence of efficient markets.
Suppose $1.00 U.S. is currently worth $1.5 Canadian. It is expected that the U.S. dollar will be worth $1.2 Canadian in one month. This will cause: a. a decrease in the value of U.S. exports to Canada. b. a decrease in the demand for Canadian dollars. c. an increase in the demand for U.S. dollars
d. a decrease in the demand for U.S. dollars.
Information goods such as a music video have an L-shaped average cost curve.
Answer the following statement true (T) or false (F)
When there is a price floor there will be
A. a shortage. B. a surplus. C. either a shortage or a surplus. D. neither a shortage nor a surplus.