Which of the following is a valid criticism of the use of money as a store of value in modern economies?
A. annual inflationary loss of buying power
B. money supply is too narrowly defined
C. storing money is wasteful
D. imperfect as a unit of account
Answer: A. annual inflationary loss of buying power
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Use of bovine growth hormone (BGH) on cattle dramatically increases the milk output of dairy cows. Dairy farmers in Wisconsin vigorously oppose permitting the drug’s use over concerns of an excess supply and a consumer reaction on the purity of food issue that could put many of them out of business. Which of the graphs in Figure 4-13 is consistent with these concerns?
A. 1 B. 2 C. 3 D. 4
What is the advantage of the standard deviation over the average deviation?
A) Because the standard deviation requires squaring of deviations before further computation, positive and negative deviations do not cancel out. B) Because the standard deviation does not require squaring of deviations, it is easy to tell whether deviations are positive or negative. C) The standard deviation removes the units from the calculation, and delivers a pure number. D) The standard deviation expresses the average deviation in percentage terms, so that different choices can be more easily compared. E) The standard deviation transforms subjective probabilities into objective ones so that calculations can be performed.
Budget cuts which lead to more lax protection of our borders will affect the labor market in California. It will cause a(n) ___________ in labor supply, resulting in __________.
A. decrease; higher wages B. increase; higher wages C. increase; lower wages D. decrease; lower wages
The monetarists totally reject the importance of changes in the money stock as determinants of changes in real GDP, the price level, and employment
a. True b. False Indicate whether the statement is true or false