When money is used as a medium of exchange
A. it reduces the number of transactions in the economy.
B. the need for a barter system diminishes.
C. the cost of transactions increases.
D. the need for a banking system in the economy decreases.
Answer: B
You might also like to view...
Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run
Indicate whether the statement is true or false
In a cartel, participating members can cheat by
A) letting more entrants join the cartel. B) leaving the industry. C) producing a lower production level than the cartel quota. D) charging a slightly lower price and raising production.
At which point is society producing the most output possible with the available resources and technology? (See Figure 1.1.)
A. A. B. B. C. C. D. D.
Marginal cost is the
A) cost of an increase in an activity. B) total cost of an activity. C) cost of an activity minus the benefits of the activity. D) cost of all forgone alternatives.