Use of money as a medium of exchange
A. represents the most important service that money renders.
B. permits only very limited production because of the high transaction costs of exchange.
C. means that transactions only occur if there is a double coincidence of wants.
D. permits only very limited specialization of labor.
A. represents the most important service that money renders.
You might also like to view...
The matching function exhibits all of the following properties except
A) diminishing marginal product of labor. B) constant returns to scale. C) increasing in matching efficiency. D) increasing in inputs of searching consumers and firms.
Which of the following will cause the average cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 an hour wage increase paid to all cigarette production workers D) All of the above
Four possibilities are equally likely and have payoffs of $2, $4, $6, and $8 . The expected value is:
a. $5 b. $6 c. $7 d. $8
The purpose of fiscal policy should be to
A. balance the budget to be fiscally responsible. B. balance aggregate supply and aggregate demand. C. keep taxes low to keep voters happy. D. minimize government spending to avoid wasting money.