A barter economy is one in which:
a. money serves as a medium of exchange.
b. only precious metals are accepted as money.
c. goods are traded directly for other goods.
d. paper money is backed by gold.
c
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Firms in a perfectly competitive industry are earning economic losses. This is
A) a signal to entrepreneurs that some of the firms in the industry should exit and the resources of these firms should move into production of other goods. B) a signal to entrepreneurs that additional resources should be brought into this industry in order to make it profitable. C) a signal that the entrepreneurs are doing a poor job and should become workers for someone else. D) a signal to government officials that a subsidy is needed for the firms in the industry.
When we talk about injections in the classical model, we refer to
a. taxes b. total government purchases. c. federal government purchases only. d. state government purchases only. e. local government purchases only.
Action to reverse the effect of official intervention on the domestic money supply is called
A. sterilization. B. a crawling peg. C. the gold standard. D. a parallel market.
Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to:
a. increase. b. decrease. c. remain unchanged. d. increase and then decrease.