Would the use of money, as opposed to barter, increase the growth rate of real GDP in a country over time? Why or why not?
What will be an ideal response?
Yes, because money makes exchanges easier and increases specialization. Greater specialization raises productivity, which increases the growth rate of real GDP.
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An asset is said to be riskless if:
A) it can be easily converted into cash. B) its value does not change from day to day. C) its value is more likely to fall in future. D) it offers a positive rate of interest.
Thomas Schelling's most notable work dealt with ________, which lead to his advising role for the film Dr. Strangelove
A) neighborhood segregation B) nuclear annihilation C) medical malpractice D) psychotherapy
The presence of ________ creates a difference in the value between the market price and the factor cost of a product
A) indirect taxes and consumption B) subsidies and direct taxes C) corporate profits and subsidies D) indirect taxes and subsidies
The effect of an import quota is
A) to shift the supply curve up by the amount of the quota. B) to lead to a decrease in demand. C) to make the supply curve vertical at the amount of the quota. D) to make the supply curve horizontal at the amount of the quota.