What are the three functions of money?
Economists have identified three specific functions of money. The first function of money is that it performs as a medium of exchange. Money must be very widely accepted as a method of payment in the markets for goods, labor, and financial capital. The second function of money is that it serves as a unit of account. Money is the ruler by which other values are measured. The third function of money is that it can be used as a store of value over time.
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Economics is a social science in the sense that it
A. rigorously examines human behavior. B. is not as scientific as physics. C. relies on historical data instead of mathematical data. D. relies on statistics instead of mathematics. E. All of these responses are correct.
Suppose you purchase a new home for $150,000, making a down payment of 10% and taking out a mortgage on the balance. What is the return on your investment in your home if one year later the price of your home decreases by 20%?
A) -10% B) -30% C) -50% D) -200%
Which of the following is a reason for the change in labor union membership since the 1970s?
a. Workers have moved out of manufacturing and into the service sector. b. The government has increased regulation of heavily unionized industries. c. Global competition has fallen and led to more “home-grown” manufacturing. d. Newer models include project-based learning, maker spaces, and coworking.
Which of the following is not a lagging indicator?
A. duration of unemployment B. stock prices C. commercial and industrial loans D. prime rate