If product prices were stated in terms of gallons of milk, then milk would be functioning primarily as:
A. legal tender.
B. a unit of account.
C. fiat money.
D. a store of value.
Answer: B
You might also like to view...
An increase in the income tax ________ potential GDP by shifting the labor ________ curve ________
A) decreases; demand; leftward B) increases; demand; rightward C) decreases; supply; rightward D) decreases; supply; leftward E) increases; supply; rightward
If concerns about mad-cow disease impose economic losses on the perfectly competitive cattle ranchers, exit by the ranchers combined with no further changes in the demand for beef will force the price of beef to
A) decrease. B) not change. C) increase. D) fluctuate, with the trend being lower prices. E) probably change, but more information about the market supply of beef is needed to answer the question.
According to the table shown, what happened to the cost of living from 2013 to 2014? The cost of living:
A. increased; consumers became worse off than they would have been if the price level had not changed.
B. decreased; consumers became worse off than they would have been if the price level had not changed.
C. increased; consumers became better off than they would have been if the price level had not changed.
D. decreased; consumers became better off than they would have been if the price level had not changed.
If the federal government has a budget surplus in a given year, the national debt will:
A. remain constant. B. increase. C. increase only if output is below potential output. D. decrease.