The value in one year of $25 invested today at an annual interest rate of 5 percent will be
A) $25.00.
B) $26.25.
C) $27.50.
D) $30.00.
B
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Money performs all of the following functions EXCEPT serving as a
i. medium of exchange. ii. unit of account. iii. barter mechanism. A) iii only B) ii only C) i only D) ii and iii E) i and ii
Scarcity: a. exists in command economies
b. exists in market economies. c. exists only for the poor in any type of economy. d. (a) and (b) above are correct
In the long-run, the price level in the economy will change the same direction as aggregate demand
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, at the market price, buyers
a. cannot buy all they want, and sellers cannot sell all they want. b. cannot buy all they want, but sellers can sell all they want. c. can buy all they want, but sellers cannot sell all they want. d. can buy all they want, and sellers can sell all they want.