For any item (physical or financial) to be used as money, the item must be
a. a precious metal, such as gold or silver
b. accepted as a medium of exchange
c. divisible into smaller units by at least 10, otherwise most exchanges cannot occur, rendering useless the money form
d. paper (fiat) backed by a precious metal
e. portable
B
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According to the neoclassical growth model, if a country makes a policy change to increase its savings rate, in the new steady state:
a. output per worker will grow faster than before. b. output per worker will grow at the rate of technology growth. c. capital per worker will be permanently higher. d. all of the above.
Which of the following is the largest component of federal spending today?
A) income security B) Social Security C) Medicare D) national defense
The richest 10 percent of U.S. houses hold more than two-thirds of all wealth. The problem with this statement is that
A) it does not consider an individual's current income. B) it does not consider private and public pension plans. C) it is based entirely on nonhuman wealth. D) it is based entirely on human wealth.
For an economy, the greater the value of the Gini co-efficient, _____
a. the greater will be the GDP. b. the greater will be the income inequality c. the greater will be the revenue of the government from direct taxes d. the greater will be the equality in the distribution of income and wealth e. the lesser will be the expenditure on the part of the government