When your grandfather keeps a bundle of $100 dollar bills behind a brick in the basement, this is an example of dollars serving as:
A. a medium of exchange.
B. a store of value.
C. bank reserves.
D. a unit of account.
Answer: B
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Income accrues to people who supply productive services, which means services that
A) add to the monetary income of the society. B) are in demand. C) contribute to social welfare. D) result in tangible or durable products. E) supply basic wants.
The overwhelming unpopularity of inflation among citizens is largely a result of the fact that
A) inflation raises the real cost of such basic necessities as food, housing, and clothing. B) inflation reduces the value of real wealth. C) no one knows what causes it. D) no one (or almost no one) gains from inflation. E) people who gain from inflation often erroneously conclude that they are losing as a result of it.
The long-run aggregate supply curve plays an important role in determining:
A. output in the long run. B. the price level in the short run. C. output in the short run and long run. D. output in the short run.
Economic takeoff:
A. occurs when development becomes self-sustaining. B. will eventually occur in all developing countries. C. typically occurs in the absence of foreign investment. D. has yet to occur in any developing country.