Money is the standard of exchange by which any type of goods can be purchased.
Answer the following statement true (T) or false (F)
True
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The concept that increased government spending will lead to lower investment and consumer spending is referred to as the
A) inflationary effect. B) crowding-out effect. C) aggregate demand effect. D) Keynesian effect.
To explain the long-run determinants of the price level and the inflation rate, most economists today rely on the
a. quantity theory of money. b. price-index theory of money. c. theory of hyperinflation. d. disequilibrium theory of money and inflation.
Refer to the above graphs. A price increase from $20 to $40 causes quantity demanded to decrease from 100 units to 50 units. Which graph best illustrates the price elasticity of demand for this good?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
A prisoner's dilemma illustrates situations in which:
A. there is a conflict between the narrow self-interest of individuals and the broader interests of a group. B. resources with the lowest opportunity cost should be used first. C. efficiency is an important social goal. D. everyone does best when each person specializes in the activities in which he or she has a comparative advantage.