Money lowers the transaction cost when:
a. the economy is experiencing rapid inflation.
b. its value is stable
c. the rate of inflation is uncertain.
d. there is widespread deflation
b
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Automatic teller machines and debit cards are examples of
A) electronic funds transfer systems. B) commodity monies. C) legal tender in the United States. D) modern barter systems.
The social costs of imperfect competition are known as
A) dead-weight loss. B) consumer surplus. C) producer surplus. D) none of the above.
A cartel is
A) a group of producers that agree to set common prices and output quotas. B) a group of consumers that bid against each other for the same product. C) a government agency that regulates markets. D) an arbitrator to settle disputes between consumers and producers.
Regarding the costs of regulation, which is a FALSE statement?
A) Airline safety standards have increased the price of air travel. B) Automobile safety standards raise the price of cars. C) Regulatory spending by federal agencies has decreased since 1970. D) Pharmaceutical manufacturing safety standards raise the price of drugs.