Suppose you are offered a concert ticket in exchange for four hours of your work in your friend's garden. This is an example of
A. money as a standard of deferred payment.
B. money as a medium of exchange.
C. barter.
D. money as a store of value.
Answer: C
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All of the following are exempt from antitrust laws EXCEPT
A) labor unions. B) professional baseball. C) oil companies. D) public utilities.
The Superfund for toxic waste was established for all of the following reasons except one. Which is the exception
a. sites get a lot of media attention b. Superfund sites are more hazardous than other sources of pollution, e.g., fertilizer residues c. the costs of cleanup are concentrated d. political pressure e. none of the above
The multiplier effect refers to the fact that a change in spending (aggregate demand) will
a. increase the money supply. b. cause prices to rise by some multiple of the initial increase in spending. c. cause nominal output to rise by some multiple of the initial increase in spending. d. reduce prices by some multiple of the increase in spending.
If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium?
A. The insurance companies take advantage of the increased demand and collude. B. Less healthy people join the pool of insured and hence increase the risk and the premium. C. Medical services are more expensive because of increased demand. D. None of the statements is correct.