A fiduciary monetary system means
A. that money is legal tender.
B. that the currency is backed by implicit faith in government.
C. that the value of each currency is determined by the amount of gold held by each nation.
D. that money has commodity value.
Answer: B
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The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a
A) medium of exchange. B) standard of deferred payment. C) store of value. D) unit of account.
When U.S. residents buy products that were made in Japan, then ultimately the Japanese want
A) yen. B) dollars. C) Japanese goods. D) goods, including U.S.-made goods.
A negative income tax program is
a. based on government cash payments to the poor that are linked to their income levels b. basically an income tax, meaning you receive what you earn then pay your taxes for the poor who don't pay tax c. basically in-kind assistance d. designed to provide a maximum level of income to the poor e. based on cash payments that increase as income increases
Psychological incentives:
A. are not important in non-economic settings. B. never serve as commitment devices. C. can serve as commitment devices. D. are not important in economic settings.