A difficulty of the barter system is:
(a) Lack of common measure of value.
(b) Lack of double coincidence of wants.
(c) Difficulty in storage of extra goods.
(d) All of the above.
Answer: (d) All of the above.
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Aggregate supply
A) is the overall wealth within an economy. B) is the total of all planned production in an economy. C) is the total amount of raw materials available in an economy. D) is the total amount of money circulating in an economy.
Refer to Figure 23-4. Potential GDP equals $500 billion. The economy is currently producing GDP1 which is equal to $450 billion. If the MPC is 0.8, then how much must autonomous spending change for the economy to move to potential GDP?
A) -$40 billion B) -$10 billion C) $10 billion D) $40 billion
Which of the following statements is correct?I.When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.II.Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.
A. I only B. II only C. Both I and II D. Neither I nor II
The main objective of the members of a cartel is to
A. produce efficiently. B. make the industry more competitive. C. obtain a patent. D. earn economic profits.