The greater the degree of specialization in the economy, the:
a. easier it is to discover a double coincidence of wants
b. more feasible is a barter system.
c. less likely it is that monetary exchange will develop.
d. harder it is to negotiate an exchange rate between all pairs of goods.
e. more likely it is that individual consumers are self-sufficient.
d
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Resource use is allocatively efficient when marginal benefit is
A) greater than marginal cost. B) equal to marginal cost. C) less than marginal cost. D) at its maximum value.
How many prices would there be in a barter economy with 100 goods?
A) 100 B) 1,000 C) 4,950 D) 10,000
Which of the following models do not believe that there exists a short run tradeoff between higher inflation and lower unemployment?
a. Keynesians b. monetarists c. new classical d. real business cycle e. none of the above
The production possibilities frontier represents the boundary between attainable and unattainable prices of commodities
a. True b. False