Economists argue that the move from barter to money increased trade and production. How is this possible?
The use of money allows people to trade more easily. When it is easier to trade, specialization increases. Increased specialization increases production and the standard of living.
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In perfect competition, each individual firm faces ________ demand curve
A) an inelastic B) an upward sloping C) a perfectly elastic D) a downward sloping
If the principal has full information, production efficiency without supervision can occur with
A) a fixed-fee rental contract. B) a profit-sharing contract. C) an incentive-compatible contract. D) All of the above.
An example of moral hazard is
a. people drive as carefully in icy conditions with antilock brakes as without b. people drive less safely with more airbags than without c. football players avoid 'spearing' with their heads even with safer helmets d. people read the medicine warnings as carefully when self-medicating as with a doctor's prescription
If total utility is falling, marginal utility is:
a. positive. b. negative c. positive, but declining. d. either positive or negative. e. zero.