We say that money is a medium of exchange because it represents:
A. something you can use to purchase goods and services.
B. something you can directly offer, like any good or service, in exchange for some good or service you want.
C. a certain amount of purchasing power held over time.
D. a standard unit of comparison.
Answer: A
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The law of demand states that, other things remaining the same, the higher the price of a good, the
A) smaller is the demand for the good. B) larger is the demand for the good. C) smaller is the quantity of the good demanded. D) larger is the quantity of the good demanded.
Social surplus is maximized in a(n) ________
A) perfectly competitive market B) monopolistically competitive market C) monopoly market D) oligopoly market
In the early antebellum period, New England women's wages were about 1/3 of men's wages. By 1860, New England women's wages were
a. about ¼ of men's wages. b. about ½ of men's wages. c. more than men's wages. d. about equal to men's wages.
The budget deficits of the 1980s and early 1990s differ from others in the post-World War II era in that they were
a. a result of the Fed rather than a change in fiscal policy. b. temporary rather than structural, and pose no threat to the economy. c. not contracted to fight a war or end a recession. d. contracted as part of a program to plan the economy.