Suppose prices are quoted in dollars and transactions are conducted in pesos. The peso serves as a
A) medium of exchange.
B) store of value.
C) unit of account.
D) all of the above.
A
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At high wage rates, the labor supply curve bends backward because the ________ effect dominates the ________ effect
A) income; price B) substitution; income C) substitution; price D) income; substitution
Applying Coase's theorem, if the cost to you from having the airplane seat in front of you reclined is ________ the benefit to the reclining passenger, you should ________
A) greater than; request a payment from the reclining passenger B) less than; request a payment from the reclining passenger C) greater than; make a payment to the reclining passenger D) less than; make a payment to the reclining passenger
A bottle of wine manufactured in Paris, France cost 45 euros. What is the dollar value of the wine if the exchange rate is $0.80 per euro?
A) $36.00 B) $56.25 C) $40.00 D) None of these dollar values is correct.
When explaining expansions and recessions, the classical model is
a. reliable b. seriously flawed c. the favorite explanatory tool of economists d. overly focused on the labor market e. sometimes accurate and sometimes not