Which of the following functions of money would be violated if inflation were high?
A) unit of account
B) store of value
C) certificate of gold
D) medium of exchange
Answer: B
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External benefits cause the market to:
a. underallocate resources. b. be more efficient. c. set excessively high prices. d. have persistent shortages.
Average income has been stagnant for many years in
a. Western European counties. b. some Asian countries like South Korea and Singapore. c. some Sub-Saharan African countries. d. All of the above are correct.
In 1936, John Maynard Keynes published a book, The General Theory, which attempted to explain
a. stagflation. b. the classical dichotomy. c. short-run economic fluctuations. d. how changes in the money supply had created the Great Depression.
Refer to the accompanying figure. It is efficient for this farmer to:
A. grow 1,000 bushels of wheat and 500 bushels of corn. B. grow 250 bushels of wheat and 500 bushels of corn. C. grow 500 bushels of wheat and 500 bushels of corn. D. grow 500 bushels of wheat and 250 bushels of corn.