The high transaction costs associated with a barter system refers to the:
A. fact that, often times, these exchanges are taxed by governments.
B. cost of drawing up complete contracts.
C. risk associated with having to carry an inventory of goods to trade.
D. high cost associated with finding someone with whom to exchange.
Answer: D
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Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:
A. always lead to the most efficient allocation of resources. B. often lead to increasing inequality. C. always lead an economy to ruin. D. often lead to the most efficient allocation of resources.
This month, the local widget factory produced 100 widgets. The total variable cost of production was $500 and the average total cost of production was $8
a. What is the total cost? b. What is the total fixed cost? c. What is the average fixed cost? d. What is the average variable cost?
The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
Define “supply.”
Please provide the best answer for the statement.