The existence of money
a. reduces specialization.
b. makes trade easier.
c. allows for barter.
d. hinders production.
b
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The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
In the short run, a firm might choose to produce rather than shut down even if its market price is less than its average total cost of production
Indicate whether the statement is true or false
A capital-intensive production process is one that
A. Has a high ratio of capital to labor. B. Has a high ratio of labor to capital. C. Is used only in the United States. D. All of the choices are correct.
Refer to the graph below, where Sd and Dd are the domestic supply and demand curves for a product. The world price of the product is $6. If this market were closed to international trade, the total revenue that would go to domestic producers would be:
A. $600, but only $240 if the domestic market were open to international trade
B. $600, but only $120 if the domestic market were open to international trade
C. $500, but only $240 if the domestic market were open to international trade
D. $240, but only $120 if the domestic market were open to international trade