A barter economy refers to a situation in which goods and services are traded for other goods and services, with no money involved in transactions. The major shortcoming of a barter economy is
A) transactions cannot take place without money.
B) the requirement of a double coincidence of wants.
C) government has no way of collecting taxes.
D) goods and services have no way of storing value.
B
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If the government regulates the price a natural monopolist can charge to be equal to the firm's average total cost, the firm has no incentive to reduce costs
a. True b. False Indicate whether the statement is true or false
Explain why the changes we observe in nominal exchange rates in the short run must be due primarily to changes in the real exchange rate in countries with low inflation.
What will be an ideal response?
All of the following characteristics are common to both monopolistic competition and perfect competition except
A) firms act to maximize profit. B) entry barriers into the industries are low. C) the market demand curves are downward-sloping. D) firms take market prices as given.
Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. You observe that the price of streaming movies is higher in the winter than in the summer. This would be explained by the fact that
A. demand for streaming movies is higher in the winter than in the summer. B. the quantity demanded of streaming movies is higher in the winter than in the summer. C. consumer income tends to fall in the winter and increase in the summer. D. there are more streaming movies released in the winter than in the summer.