Which of the following functions of money would prove rather useless if inflation were extremely high?
A) medium of exchange
B) store of value
C) standard of value
D) all of the above
B
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Assume that James owns a wheat farm that produces an annual crop of 500 bushels. His only choice is to store it in a nearby grain elevator owned by Martin, whose facility will be empty unless James is using it. Martin contracts with James to provide storage at $5 per bushel every month. In this example James and Martin are in:
a. probabilistic positions. b. asymptotic positions. c. hypothetical positions. d. symmetric positions.
Answer the next question using the following budget information for a hypothetical economy. All data are in billions of dollars. Government SpendingTax RevenuesGDPYear 1$800$825$4,000Year 28508504,200Year 39008754,350Year 49509004,500Year 51,0009254,600In which year is there a balanced budget?
A. Year 1 B. Year 2 C. Year 3 D. Year 4
Income lost by the unemployed is an example of the ________ cost of unemployment, while the additional spending to control crime is an example of the ________ cost of unemployment.
A. economic; psychological B. social; psychological C. economic; social D. psychological; economic
GDP is a measure of all of the following EXCEPT
A. the total value of expenditures. B. the overall level of economic activity. C. the total of production. D. overall welfare.