A system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is
A. a fiduciary system.
B. a socialistic system.
C. a private property system.
D. a Gresham system.
Answer: A
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A movie theater raises ticket prices from $8 to $10 in order to raise revenues. The theater's management is assuming the absolute value of the price elasticity of demand for tickets is
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
If Project A has a cost of $2 and provides a benefit of $3, and Project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) A shift from Project A to Project B increases the net benefit by $1. B) The net benefit of Project A is $5. C) An individual can optimize by choosing Project B. D) Project A has a higher net benefit than Project B.
You have a bond that pays $125 per year in coupon payments. Which of the following would result in an increase in the price of your bond?
A) Coupon payments on newly-issued bonds rise to $140 per year. B) The likelihood that the firm issuing your bond will default on debt increases. C) Coupon payments on newly-issued bonds fall to $75 per year. D) The price of a share of stock in the company falls.
Assume that college-educated labor and high school-educated labor are complements in production. That is, the two types of labor work together, so that an increase in the quantity of either type increases the productivity of the other type of labor
Is this consistent with the observed increase in the college wage premium?