In a barter economy,
A) money trades for goods, goods trade for services, and services trade for money.
B) goods and services trade for other goods and services.
C) some goods are more readily accepted in exchange than others.
D) making exchanges takes less time (on average) than in a money economy.
E) b and c
E
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Which statement is true?
A. Entrepreneurial ability is in short supply in the U.S. B. Land, labor and capital may be considered passive resources. C. The concept of opportunity cost is irrelevant when there is scarcity. D. None of these statements are true.
A decrease in interest rates will
A) shift the investment function relating planned investment to the interest rate to the left. B) be a movement along the investment function relating planned investment to the interest rate. C) shift the investment function relating planned investment to the interest rate to the right. D) have no impact on the investment function relating planned investment to the interest rate.
A monopoly is a market with
A) many suppliers each producing an identical product. B) no barriers to entry. C) many substitutes. D) one supplier. E) many suppliers each producing a slightly different product.
If nation A has an absolute advantage over nation B in the production of a product, this implies that:
A. it requires fewer resources in A to produce the good than in B. B. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. C. nation B could not benefit by engaging in trade with A. D. nation A could not benefit by engaging in trade with B.