Which of the following is true of the unit of account function of money?
a. It makes money durable in nature
b. It makes the relative values of goods and services more easily known.
c. It implies that money should be made of something valuable.
d. It implies that money can be used to save up purchasing power.
e. It implies that money is more easily counted than goods.
b
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A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. Initially the lake is owned by no one
Keeping in mind the Coase theorem, suppose transactions costs are low and the fishing club is given ownership of the lake. Compared to the situation with no property rights, the quantity of chemicals produced A) will decrease. B) will stay the same. C) will increase. D) changes, but the direction of the change is ambiguous.
In long-run equilibrium, a perfectly competitive firm's short-run marginal cost curve crosses the long-run average cost curve at the lowest point on the long-run average cost curve
a. True b. False Indicate whether the statement is true or false
When current production of goods and services in an economy is greater than planned aggregate expenditure, _____
a. inventories of goods and services will increase b. firms will increase production to replenish depleted inventories c. businesses and households will increase planned aggregate spending d. the price level will automatically rise to restore equilibrium in the economy e. leakages must equal planned injections
One of the Fed's ultimate targets is:
A. the reserve requirement. B. the Taylor rule. C. stable prices. D. the Fed funds rate.