The use of money as a medium of exchange I. lowers transaction costs. II. permits more specialization
A) I only
B) II only
C) Neither I nor II
D) Both I and II
D
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By the first years of the 21st century, the rate of inflation in the United States had fallen to between ________ percent
A) 1 and 2 B) 4 and 5 C) 5 and 6 D) 8 and 10
The above figure shows a perfectly competitive firm. If the market price is $15 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
Monetarists directly study the link between money and economic activity using
A) structural models. B) reduced-form models. C) scientific models. D) experimental models.
Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
a. the law of absolute advantage. b. the law of demand. c. the law of production possibilities. d. the law of comparative advantage