Maura has harvested 100 acres of trees from her land. She could keep the resulting lumber and sell it piece by piece as she needs to pay for things, but she decides to sell it all at once and deposit the money into a savings account, where it will be safe and relatively easy to access. Maura’s decision to keep her assets in money form rather than as lumber illustrates money’s function as a ______.
a. store of value
b. medium of exchange
c. unit of account
d. means of deferred payment
a. store of value
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
Prior-to-trade (autarky) producer surplus equals area(s)
A. J + I. B. E + F + J + I. C. E + F. D. J.
Crops that are grown primarily to sell, rather than to consume, are referred to as
a. staples b. subsistence crops c. cash crops d. market crops e. none of the above
If a firm’s activities generate detrimental externalities, the marginal social cost will be less than the marginal private cost.
Answer the following statement true (T) or false (F)
Amusement parks often offer discounts to locals with IDs. This is an example of
a. A direct discrimination scheme b. An indirect discrimination scheme c. Diminishing marginal returns d. Vertical integration