Which function of money allows consumers who are searching for a new car to compare the costs of different optional features of different cars in order to determine if they want the features or not?
a) Medium of exchange
b) Unit of account
c) Store of value
d) Barter
Answer: b) Unit of account
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When an economy relies on specialization,
A) the economy will generally produce only one product. B) the economy will usually be heavily agricultural. C) each individual in the economy produces the goods or services for which he or she has relatively the best ability. D) each individual will be assigned by the government to produce that good or service the government believes the economy should specialize in.
Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?
a. spending on education b. the purchase of stocks and bonds c. the purchase of a new house d. the purchase of durable goods such as stoves and washing machines
A dentist's office, which wants to serve the maximum number of patients given a fixed payroll, currently has two dentists and four dental hygienists. Dentists earn $60,000 a year and hygienists earn $15,000 a year. If the office is hiring the optimal combination of dentists and hygienists, and the last dentist hired served 120 additional patients, how many patients will the last hygienist hired add?
A. 60 B. 30 C. 120 D. 240
Classicals argue that an adverse supply shock would
A. raise the natural rate of unemployment, but not the actual rate of unemployment. B. raise neither the natural rate of unemployment nor the actual rate of unemployment. C. raise both the natural rate of unemployment and the actual rate of unemployment. D. raise the actual rate of unemployment, but not the natural rate of unemployment.