Money solves the problem of double coincidence of wants that would regularly occur under a system of credit.
Answer the following statement true (T) or false (F)
False
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Which of the following helps to classify an industry's market structure?
a. the long-run equilibrium price b. the impact of industry expansion on input prices c. the existence of barriers to entry d. the shape of the short-run average total cost curve e. the existence of economic profit in the short run
Describe the sequence of events that real business cycle theorists would use to explain how an adverse supply shock would impact the economy. Use your answer to explain why it is easy to confuse cause and effect between changes originating on the supply side and those that begin on the demand side
In the Keynesian model, it is assumed that, when demand for a firm's product changes, the firm changes:
A. production levels to meet the demand. B. prices, but holds production levels constant, to meet the demand. C. prices to meet the demand. D. prices and production levels to meet demand.
Which of the following is not a rationale for protectionist policies?
A. Improve the welfare of domestic consumers. B. Protect domestic workers from foreign competition. C. Help domestic firms establish a world monopoly in a particular market. D. Protect an infant industry from foreign competitors.