In today's economy, dollar bills serve as money because
A) people have confidence that others will accept them as money.
B) they are backed by gold.
C) they have a value as a commodity independent of their use as money.
D) they can be redeemed for gold by the Federal Reserve.
A
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The above figure shows one of Sam's indifference curves between gasoline and coffee. Which of the following about a movement along Sam's indifference curve is CORRECT?
A) As he moves leftward along the curve, he likes the combinations of gasoline and coffee better and better. B) As he moves rightward along the curve, he likes the combinations of gasoline and coffee better and better. C) He likes all combinations of gasoline and coffee along the curve equally well. D) None of the above is true.
The gains from international trade are closely related to
A) the labor theory of value. B) how much the autarky price differs from the international price (i.e. the terms of trade). C) the fact that one country must lose from trade. D) All of the above.
Refer to the above figure. Profits for this firm are positive
A) only for all points less than B. B) only at points B and C. C) for points between B and C. D) for all points less than B and greater than C.
An increase in the US demand for pound causes
a. An appreciation of the pound b. Depreciation in the dollar c. None of the above d. Both a and b