What is a commodity money system?
What will be an ideal response?
A commodity money system is a monetary system in which the actual money is a commodity, such as gold or silver.
You might also like to view...
In perfect competition, if the market price of the product is initially higher than the minimum average total cost faced by the firms, then
A. other firms will enter the industry and the industry supply will decrease. B. other firms will enter the industry and the industry supply will increase. C. some firms will exit the industry and the industry supply will decrease. D. some firms will exit the industry and the industry supply will increase.
The law of demand in the foreign exchange market refers to the relationship between the
A) exchange rate and the quantity of U.S. dollars demanded. B) interest rate and the exchange rate. C) interest rate and the quantity of U.S. dollars demanded. D) U.S. price level and the exchange rate.
What is the difference between accounting profit and economic profit?
What will be an ideal response?
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Jack is considering whether to play the first game. If Jack only cares about the expected value of the outcome and does not care about risk, he should:
A. not play the game, since it costs $5 and the expected payoff is $5.75. B. play the game since it costs $5, and the expected payoff is $5.75. C. play the game since it costs $5.75 and the expected payoff is $5. D. not play the game since it costs $5.75 and the expected payoff is $5.