What are four inefficiencies of a barter system?
What will be an ideal response?
Under a barter system, there are several inefficiencies. First, there must be a double coincidence of wants, resulting in high transaction costs. Second, there will be many prices for each good; one for each good for which it can be traded. Third, there is a lack of standardization in terms of the goods to be exchanged. Fourth, it will be difficult to accumulate wealth.
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Use the following graph to answer the next question.
If the industry were served by a pure monopoly, the deadweight loss would be the area ________.
A. ACE B. AEF C. ACB D. This can't be determined with the information provided in the graph.
Fixed costs are best defined as: a. costs that do not vary with output
b. costs that vary with output. c. the sum of all marginal costs. d. the change in total cost when one more unit of output is produced.
Opportunity-cost theory implies that if the public lost most of its interest in spectator sports,
What will be an ideal response?
Refer to the graph shown.
Given these production possibility curves, you would suggest that:
A. Both countries should produce an equal amount of each. B. Country A should specialize in widgets and Country B in wadgets. C. No trade should take place. D. Country A should specialize in wadgets and Country B in widgets.