What is a barter economy? What are its major drawbacks?
Barter is the mechanism of trading one good or service for another. A barter economy requires a double coincidence of wants to exchange goods or services between two people. A double coincidence of wants is a situation in which two people each want some good or service that the other person is able to provide.
The two major drawbacks of a barter economy are the lack of double coincidence of wants and
the challenges in the measurement of the quantity of one good that can be exchanged for the other good.
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By itself, the substitution effect of an increase in the wage rate will
a. always lead to an increase in the quantity of labor supplied b. always lead to a decrease in the quantity of labor supplied c. lead to an increase in the quantity of labor supplied only if leisure is like a normal good d. lead to an increase in the quantity of labor supplied only if leisure is not a normal good e. lead to an increase in the quantity of labor supplied only if the income effect works in the same direction
If the MPC = 0.75 and a household obtains $50,000 more dollars then how much would the household spend of the additional $50,000?
A. $12,500 B. $37,500 C. $40,000 D. $50,000
Which statement is true?
A. Both the Taft-Hartley and Wagner Acts are viewed as pro-labor. B. Both the Taft-Hartley and Wagner Acts are viewed as anti-labor. C. The Taft-Hartley Act is viewed as pro-labor and the Wagner Act is viewed as anti-labor. D. The Taft-Hartley Act is viewed as anti-labor and the Wagner Act is viewed as pro-labor.
If there is a recessionary gap in the economy, discretionary fiscal policy would likely involve an action to
A) shift the aggregate demand curve to the right. B) shift the aggregate demand curve to the left. C) shift both the aggregate demand curve and aggregate supply curve to the right. D) shift both the aggregate demand curve and aggregate supply curve to the left.