In order to function as a medium of exchange, money must:
A. be backed by gold.
B. be generally accepted in exchange for goods and services.
C. be backed by some precious commodity.
D. maintain a constant value over an extended period of time.
Answer: B
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Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy's resources are fully employed, the value of production is called real GDP.
Explain whether or not the ability-to-pay principle of tax equity is consistent with the benefits received principle of taxation.
What will be an ideal response?
Industries which receive government protection from trade pressures are likely to exhibit all of the following except
a) high levels of employment b) low levels of productivity c) a high proportion of unskilled workers d) monopoly power e) comparative advantage
Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs for high-income families. We can best describe the change as
A. equitable. B. potentially efficient. C. inefficient. D. Pareto efficient.