Why does bad money drive out good money? Because
a. money has high liquidity so that an excess supply of money creates unnecessary money, which comes to dominate the money market
b. Say's Law means that money supply creates money demand and if too much money is created, it is bad because it can create inflation
c. good money is in the form of bullion (specie, such as gold) which is preferred over nonbullion money
d. people will not use bad money for exchange because it means exchanging it away so that bad money never serves the role of money
e. people will not use good money for exchange because it means exchanging it away so that good money never serves the role of money
E
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Suppose Regretta Sigh becomes the lucky winner of a $10,000,000 state lottery jackpot after purchasing a single $1.00 lottery ticket. How does her lucky expenditure affect current GDP?
A) GDP rises by $1.00. B) GDP rises by $9,999,999. C) GDP rises by $10,000,000. D) GDP rises by $10,000,001. E) GDP rises by the present value of the total cash prize.
The major economic problem is to:
a. provide for full employment. b. eliminate scarcity. c. increase the standard of living. d. allocate limited resources among unlimited uses. e. increase leisure.
Economists have found evidence of a Giffen good when studying the consumption of rice in the Chinese province of Hunan
a. True b. False Indicate whether the statement is true or false
J. L. Pratt noted of the old General Motors that, "When one of them had a project, why he would get the vote of his fellow members, if they would vote for his project, he would vote for theirs." This is called:
A. hypertension. B. reneging. C. logrolling. D. proposal marketing.