Relative to barter, money does NOT
A. facilitate specialization and exchange.
B. increase the frequency of transactions.
C. reduce transaction costs.
D. require a "double coincidence of wants."
D. require a "double coincidence of wants."
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The opportunity cost of holding currency decreases when
A) income decreases. B) the interest rate on bonds decreases. C) the interest rate on money decreases. D) wealth decreases.
The gains from trade creation are likely to be larger for a country if
A. the supply of the imported good by the foreigners is relatively inelastic. B. it mainly imports primary products. C. its import demand curve is relatively elastic. D. the country's government sufficiently subsidizes the production of its exportable goods.
Market power is the power to produce at the lowest cost.
Answer the following statement true (T) or false (F)
A 10 percent tax is going to be applied to a $100,000 tax base. What can be said about the revenue collected assuming static tax analysis?
A. The total revenue will be zero. B. The total revenue will be between $0 and $10,000. C. The total revenue will be $10,000. D. There is not enough information to determine what revenues will equal.