The inefficiency of taxation means that imposing a tax on a good or service typically
A. increases costs across the board.
B. reduces the amount produced.
C. increases the amount produced.
D. causes backlogs and surpluses.
Answer: B
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Perishable goods such as milk or fruit are never used as money, because they cannot function as a
A) store of value. B) unit of accounting. C) standard of deferred payment. D) medium of exchange.
The demand for money curve shows the relationship between the quantity of money demanded and
A) real GDP. B) the inflation rate. C) the real interest rate. D) the price level. E) the nominal interest rate.
Refer to Table 20-4. Assume the market basket for the consumer price index has two products—meat and potatoes—with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 125. B) 129. C) 135. D) 141.
Which of the following was an objective of the framers of the Federal Reserve System?
A) Decentralized power B) Executive branch power C) Elimination of private-sector influence D) Consolidation of the banking industry