Which of the following statements is false?
A) Money is the only good that can (or does) serve as a store of value.
B) In a barter economy, there is no good that serves as a unit of account.
C) There are higher transaction costs of making exchanges in a barter economy than in a money economy.
D) Money functions as a medium of exchange, unit of account, and store of value.
A
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According to opportunity-cost theory, if the public lost most of its interest in spectator sports,
A) athletes would have to charge more for their services in order to survive. B) the cost of hiring professional athletes would fall. C) the cost of hiring professional athletes would rise. D) the cost of hiring professional athletes would remain the same.
The above figure depicts the market for video games. If the government imposed a $3 per game tax on sellers, what would be tax revenue?
A) less than $18 B) $18 C) more than $18 D) More information is needed to determine if the tax revenue is more than, less than, or equal to $18.
If a firm shuts down, its
A. fixed costs remain unchanged. B. revenue will fall to zero. C. short-run variable costs will fall to zero. D. All of the responses are correct.
The sales manager of a retail outlet suggests that the best way to increase customers is to have a sale. If a 10 percent price cut doesn't bring in enough customers, then he'll cut prices 20 percent. Increased cash flow should take care of profits. Do you agree? Explain