For something to be considered money it must be:
A. Can be used to barter.
B. Generally accepted as a medium of exchange.
C. Has value.
D. A government declares to have value.
Answer: B
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Country A imports 1,000 cars per month. After imposing a $50 per car tariff, imports fall to 800 cars per month. How much does Country A's government collect in tariff revenue?
A) $40,000 B) $90,000 C) $10,000 D) $60,000 E) $50,000
Refer to Figure 17-4. Which of the following is true if the wage rate increases from W1 to W2?
A) The substitution effect becomes larger than the income effect. B) The income effect becomes larger than the substitution effect. C) The supply curve is unit elastic. D) The income effect and the substitution effect are equal.
The potential output of an economy is: a. the output level at which inflation is very high
b. the output level at which nominal GDP is equal to real GDP. c. less than the full-employment rate of output. d. the output level at which total unemployment is zero. e. also referred to as the natural rate of output.
Core inflation excludes price changes in food and energy because these price changes
a. may not be related to a trend in the economy’s overall price level. b. may be related to trend factors in the economy’s overall price level. c. are not volatile. d. show a constant inflation rate.