The use of money as a unit of account:
a. discourages specialization and division of labor.
b. inhibits the exchange of goods and services.
c. makes it difficult to compare the relative values of goods and services.
d. lowers information costs relative to barter.
e. relies on the existence of a double coincidence of wants.
d
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Why will a profit-maximizing, single-price monopoly NEVER produce the amount of output that maximizes its total revenue?
What will be an ideal response?
If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal
a. –$300 billion b. $300 billion c. $0 d. $80 billion e. –$80 billion
Which of the following is a problem associated with judging competitiveness by structure?
A. It is difficult to determine the relevant market and the relevant industry necessary to identify the structural competitiveness of any industry. B. It requires that each action of a firm be analyzed on a case-by-case basis, which is very time- consuming and expensive. C. Structure can be a predictor of future performance. D. Whether the actions of a firm can be considered appropriate competitive behavior depends on the circumstances.
The economy of Bananaland can be characterized by Equation 24.5.EQUATION 24.5:C = 2,000 + 0.75YdT = 200G = 400I = 500Refer to Equation 24.5. The equilibrium level of income in Bananaland is
A. 4,800. B. 5,600. C. 10,000. D. 11,000.