Credit cards such as Visa and Mastercard are
a. money because they serve as a medium of exchange: it's much like "if it looks like a duck, walks like a duck, and quacks like a duck . . . it's a duck!"
b. money because they are issued by financial institutions, such as banks, and are accepted almost everywhere in place of currency
c. accepted by merchants as if they were money, and therefore they are money
d. as liquid as currency, and therefore they are money
e. convenient but not money because what you are really using when you use a card is your checking account which is the money
E
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You purchase a bag of chocolate chips for $3, a bag of flour for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a half pound of butter for $2. You use all these ingredients to make three dozen cookies. Your roommate offers you $15 for them, and you happily accept. How much does this process contribute to GDP?
A. $7 B. $15 C. $22 D. $8
Rent control applies to about two-thirds of the private rental housing in New York City. Economic theory suggests that a below-equilibrium price established by rent control:
A. creates a surplus of rental housing. B. promotes a rapid increase in the future supply of housing. C. results in poor service and quality deterioration of many rental units. D. leads to a reduction in housing discrimination against minorities.
The international organization that serves as a forum for trade discussions and the development of trade rules is called
A) the WTO. B) the World Bank. C) the IMF. D) the United Nations.
The largest source of revenue for the federal government of the United States is from
A) tariffs collected on imported goods. B) property taxes imposed on private property. C) individual income taxes. D) sales taxes on items purchased for consumption.