The use of money for exchange and trade:
A. Increases the importance of barter
B. Fosters more specialization in production
C. Reduces consumer sovereignty
D. Raises the need for a coincidence of wants
Answer: B
You might also like to view...
According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:
a. the economy would remain in this condition indefinitely. b. the government must increase spending to restore full employment. c. prices and wages would fall quickly to restore full employment. d. the supply of money would increase until the economy returned to full employment.
Which statement is true?
A. There are at least a dozen different theories of poverty. B. The liberals and conservatives are in basic agreement about the causes of poverty. C. The liberals and conservatives are in basic agreement about how to solve the poverty problem. D. None of these statements are true.
Use the following scenario for the question below. A group of 100 people seeks out an insurance company to underwrite health insurance for its members. The expected medical spending for the group is $150,000. What will the average premium be if the health insurance company estimates the premium adding net loading costs of 15 percent?
a. $1,200 b. $2,250 c. $1,500 d. $1,725 e. $1,765
Under the purchasing-power-parity theory, if a certain market basket of identical goods costs $7,000 in the United States and 140,000 pesos in Mexico, the exchange rate should be ______.
a. $1 to 20 pesos b. $20 to 20 pesos c. $1 to 2 pesos d. $1 to 1 peso