What is a fiduciary monetary system?
What will be an ideal response?
A fiduciary monetary system is a system in which currency is issued by the government and its value is based on the public's confidence that the currency represents command over goods and services. The currency used in the system has no intrinsic value.
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When money is accepted as payment for a good or service, it is being used as a
A) medium of exchange. B) mechanism for transforming current purchases into future purchases. C) store of value. D) unit of account.
Jason needs help getting ready for the next test in his economics course and would like to hire Maria, an economics tutor, to help him
Jason is willing to pay $30 for the first hour of tutoring, $25 for the second, $20 for the third, $15 for the fourth, and $10 for the fifth. The equilibrium price for tutoring is $15 per hour. For how many hours of tutoring will Jason hire Maria? Why this amount of hours? What is Jason's consumer surplus, if any, from the tutoring? What is Maria's consumer surplus from the tutoring?
Economic growth entails an increase in the rate of production of
A) material goods. B) services. C) the money supply. D) wealth.
The lemons problem is due to
A) asymmetric information. B) moral hazard. C) hidden actions. D) symmetric information.