A barter system of payment is
A) different from a money system of payment because money does not require a double coincidence of wants.
B) similar to a money system of payment because both require a double coincidence of wants.
C) different from a money system of payment because the barter system is a better unit of account.
D) similar to a money system of payment because both use one asset as a unit of account.
E) similar to a money system of payment because both are used as stores of value and units of account.
A
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Which of the following is NOT an example of a flow variable?
A) inventory investment B) The federal deficit C) capital stock D) planned investment
In a duopoly with homogeneous products, the best response of a firm is to charge a lower price than its rival as long as ________
A) the rival's price is above marginal cost B) the rival's price is below marginal cost C) the rival's price is above average cost D) the rival's price is below average cost
Three of the four following questions are indicative of the three fundamental economic questions. Leaving out the irrelevant question, rearrange the three relevant questions in the order an economy must answer them. - Should electricity be produced from oil, solar, or nuclear power? - Should corn be produced in the North or in the South? - Who drives a Mercedes? - Should more hybrid cars and fewer SUVs be produced?
A. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should corn be produced in the North or in the South? 3. Should electricity be produced from oil, solar, or nuclear power? B. 1. Who drives a Mercedes? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South? C. 1. Should more hybrid cars and fewer SUVs be produced? 2. Should electricity be produced from oil, solar, or nuclear power? 3. Who drives a Mercedes? D. 1. Should electricity be produced from oil, solar, or nuclear power? 2. Should more hybrid cars and fewer SUVs be produced? 3. Should corn be produced in the North or in the South?
Figure 6.5 illustrates the market for sugar. With free trade, total surplus in the market would be shown as area:
A. ABC. B. AEF. C. AEG. D. FEG.