If something is to serve as money it must be a store of value. This means that it must
A. be divisible.
B. be liquid.
C. be the standard by which all goods are compared in setting prices.
D. hold its purchasing power over time.
Answer: D
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You are the manager of a theater. At present the theater charges the same admission price of $8 to all customers, regardless of age. You propose a two-tier pricing scheme: $5 for children under the age of 12 and $10 for adults
You tell your supervisor that your proposal is likely to increase revenue. What must be true about the price elasticity of demand if your proposal is to achieve its goal of raising revenue? Explain your answer.
Federal taxes increased in 1932, 1935 and 1937, and Social Security taxes were imposed in 1937 . Which group is credited for these tax increases during the Great Depression?
(a) Classical economists (b) Keynesian economists (c) Monetarists (d) Government officials and special interest groups
The above figure shows the isoquants for producing steel. When producing more than 20,000 tons there are
A) increasing returns to scale. B) decreasing returns to scale. C) constant returns to scale. D) economies of scale.
If V = 5, P = 100, and Q = 10, then M is:
a. 20. b. 10. c. 500. d. 1,000. e. 200.