Which of the following statements is false?
A. Round stones with holes in the center can serve as money.
B. Money eases the process of exchanging goods and services in a modern economy.
C. Money serves as a measure of value only when it is backed by gold or silver.
D. Money is used as a measure of the relative value of goods and services in an economy.
Answer: C
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According to the Hotelling Principle, the price of an nonrenewable resource
A) falls slowly over time. B) falls at a rate equal to the interest rate. C) rises at a rate equal to the interest rate. D) remains constant over time.
When are outcomes said to be independent? What is meant by the gambler's fallacy?
What will be an ideal response?
Describe the signaling aspect of the price system regarding the three basic economic questions
What will be an ideal response?
Farmer Brown wants some bacon for breakfast. He gets the bacon from Farmer Hernandez by giving her a dozen eggs. This type of transaction is referred to as
A. A farm transaction. B. An efficient exchange of resources. C. A money exchange. D. Barter.