Which of the following applies to the use of money as a unit of account?
I. A unit of account is an agreed measure for stating the prices of goods and services.
II. Using money as a unit of account creates a simplified pricing system.
III. Economies choose many goods as units of account.
A) I only
B) II only
C) I and III
D) I and II
D
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The EITC creates an incentive to understate income for workers whose earnings are less than the wage ceiling for maximum credit
Indicate whether the statement is true or false
The average household in Australia spends AUD 560 on groceries per month. What would this grocery bill amount to in U.S. dollars if the current exchange rate is AUD 1.55 per dollar?
a. $868.00 b. $560.00 c. $447.91 d. $361.29 e. $222.00
Suppose an industry has a four-firm concentration ratio of 20 percent and a Herfindahl index of 600. According to the cartel model, the industry would be more likely to have:
A. a price war. B. a monopolistic price. C. either a monopolistic or a competitive price, depending on barriers to entry and exit. D. a competitive price.
According to the law of supply
A) people buy more of a good when the price increases. B) people buy less of a good when the price decreases. C) producers provide more of a good when the price decreases. D) producers provide less of a good when the price decreases.