High inflation makes money ________ because ________
A) function better as a store of value; it leads to a more accurate allocation of resources
B) function less well as a store of value; the money loses value and therefore has less purchasing power
C) function better as a store of value; the money gains value and therefore has greater purchasing power
D) function better as a unit of account; money never loses value but it does gain purchasing power in some regions
E) function less well as a store of value; it decreases the price level and increases the buying power of money
B
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Diamonds are expensive because:
A. very few diamonds are discovered each year. B. the seller of most diamonds in the world restricts output. C. they are a symbol of luxury. D. they are a form of conspicuous consumption.
In games, strategies are:
A. the outcomes players want to achieve. B. the plans of action that players follow to achieve their goals. C. the same for everyone to achieve the same goal. D. All of these statements are true.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If S3 is the market supply curve, then each firm in this market will earn an economic loss of ________ per week.
A. $3,000 B. $1,000 C. $1,500 D. $2,000
Sven likes to water ski, but can only water ski during the one week each year when he is on vacation. Therefore, he plans to ski every day, for eight hours a day. The first day, Sven skied for eight hours and enjoyed every hour. The second day, Sven slept in and then skied for seven hours, which was fun but not as much fun as the first day. The third day, Sven skied for six hours, but was starting to get a bit bored by the end. The fourth day, Sven skied for four hours and then took a nap. On the fifth day of Sven's vacation, Sven went blueberry picking all day. On the fifth day of Sven's vacation, he had decided that another hour of skiing would yield:
A. the same level of utility as the day before. B. more utility than blueberry picking. C. no utility at all. D. less utility than blueberry picking.