The Coinage Act of 1792 set the relative values of silver and gold coins at 15 to 1 . Suppose the relative values of silver and gold in the market was 14 to 1 . In this case,
a. only silver would circulate as money.
b. silver would be hoarded and sold abroad.
c. silver would be overvalued at the mint.
d. both gold and silver would circulate as money.
b. silver would be hoarded and sold abroad.
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Which of the following is one of the most important benefits of money in an economy?
a. Money allows for the exchange of goods and services. b. Money allows for the accumulation of wealth. c. Money makes exchange easier, leading to more specialization and higher productivity. d. Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.
Refer to Figure 2-10. In the circular flow diagram, market K represents
A) product markets. B) firms. C) households. D) factor markets.
The sum of payments made to resource owners for the use of their resources is:
a. gross domestic product. b. net domestic product. c. national income. d. personal income. e. disposable personal income.
Which of the following is one of the arguments for tariffs?
a. encouraging dumping b. protecting against dumping c. managing exchange rates d. managing interest rates