The use of money is more efficient than barter because the introduction of money
A) reduces the need for economic specialization.
B) reduces the need to exchange goods.
C) reduces the need for other stores of value.
D) reduces transaction costs.
D
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Joey cuts lawns during the summer. Let q equal the number of acres mowed per day, and let L equal the number of hours worked per day
Joey never works more than eight hours per day, and during that time his short-run production function is q = 0.2 ? L. Which of the following statements is FALSE? A) Joey's marginal product equals his average product. B) Joey's marginal product diminishes by 0.2 for each additional hour worked. C) Joey's average product is constant. D) Joey's marginal product is constant.
Which of the following best represents the law of demand?
A) As the price of a good decreases, the demand for the good increases. B) As the price of a good increases, the quantity demanded of that good decreases. C) As the demand for a good increases, the price of that good increases. D) As the price of a good decreases, the demand curve for that good shifts to the right.
If the income effect outweighs the price effect of a wage increase, the quantity of labor supplied will:
A. increase. B. decrease. C. remain constant. D. drop to zero.
If the income elasticity of demand for a good is .59, then it is what type of good?
a. Price elastic. b. Price inelastic. c. Income inelastic. d. Income elastic. e. Inferior.