When John was in college and his income was low, he drank "Red Ribbon" beer. As his income increased, he purchased better-quality beer and less "Red Ribbon." Which graph in the above figure best represents John's Engel curve for "
A) Graph A
B) Graph B
C) Graph C
D) Graph D
D
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The "unit of account" function of money means it is the:
a. Asset people can use to accumulate wealth. b. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services. c. Barter value of a product for which a nation has a comparative advantage. d. Unit in terms of which people write contracts. e. Asset individuals get for goods and services and then use later to purchase other goods and services.
Which of the following is true of the transition process of individual European currencies to the euro?
A. Actual paper and coin currencies in circulation in individual countries were converted to dollars. B. Bank balances in these countries were converted to euro-denominated deposits. C. The gold deposits that were kept by the individual countries with their central banks were recalled. D. The transition process was complicated and time consuming.
The goal of a rational consumer is to maximize:
A. The quantities of all goods consumed B. The MU/P of all goods consumed C. Marginal utility of all goods consumed D. Total utility from all goods consumed
The increase in income generated by the additional government expenditure decreases the demand for money
Indicate whether the statement is true or false