Sam has $500 saved up for his spring break. He also carries about $300 of debt on his credit card. By choosing not to pay off his credit card with his savings, Sam is:
A. recognizing that money is fungible.
B. going to be poorer in the long run.
C. acting rationally.
D. None of these is true.
Answer: B
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When money is used to express the value of goods and services, it is functioning as a
A) medium of exchange. B) store of value. C) store of purchasing power. D) unit of account.
Bobby was researching the economic growth of a country between 2006 and 2011. Using 2006 as the base year, he calculated a twelve percent increase for real GDP and a ten percent increase for nominal GDP. His results indicate that
A) he made an error when calculating nominal GDP. B) the quantity of goods and services produced decreased over the period. C) the quantity of goods and services produced increased and prices decreased over the period. D) the quantity of goods and services produced and prices both decreased over the period. E) the quantity of goods and services produced did not change and prices decreased over the period.
A change in the wage causes a shift in the supply curve for labor and a
A) shift along the demand curve for labor. B) shift in the demand curve for labor. C) rotation in the demand curve for labor. D) It cannot be determined by the information provided.
Giving the store clerk a $20 bill for a pair of earbuds priced at $20 is an example of money serving as a
A. medium of exchange. B. unit of accounting. C. store of value. D. standard of deferred value.