When money serves as a means for determining the relative worth of goods, services, and resources, it is functioning as a:
A. standard of deferred payment.
B. store of value.
C. unit of account.
D. medium of exchange.
Answer: C
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Which of the following is NOT held as an asset by banks?
A) securities B) loans C) reserves D) currency in the banks' vaults E) checkable deposits
Labor-market regulations in developing countries
a. always reduce employment b. usually reduce employment c. may reduce employment, but the evidence is weak d. rarely reduce employment e. none of the above
The contributive standard (merit standard) for distributing income implies that
A) income should be distributed equally. B) income should be distributed according to need. C) income should be distributed according to the marginal productivity of workers. D) a transfer should be contributed to an individual above his or her contribution to net output.
Some of the nation's best minds are occupied with devising schemes to avoid taxes and to transfer income to favored groups at the expense of market efficiency. These activities are called
a. rational ignorance b. choice of the cyclical majority c. rent seeking d. competing interest legislation e. a zero-sum game