Which of the following is one of the most important benefits of money in an economy?
A) Money allows for the accumulation of wealth.
B) Money makes exchange easier, leading to more specialization and higher productivity.
C) Money encourages self-sufficiency and therefore increases economic stability.
D) Money allows for the exchange of goods and services.
B
You might also like to view...
For the purpose of GDP accounting, consumption expenditures include
A) only durable goods. B) only nondurable goods. C) both nondurable goods and services. D) durable goods, nondurable goods, and services.
Suppose the natural unemployment rate equals 6 percent and the current unemployment rate is 8 percent. We can conclude that
A) there is no structural unemployment. B) there is no frictional unemployment. C) there is no cyclical unemployment. D) full employment is not occurring.
MacDougall showed in his tests that
A) relatively higher U.S. labor productivity was associated with relatively higher U.K. export ratios. B) relatively higher U.K. labor productivity was associated with relatively higher U.K. export ratios. C) labor productivity ratios and export ratios were not associated with each other. D) None of the above.
The Big Mac Index suggests that exchange rates should leave Big Mac hamburgers costing the same in the United States as abroad.
a. true b. false