Most people who know little about economics do know that the purpose of money is to serve as a medium of exchange, that is, you buy things with it, but they will seldom identify its two other purposes, which are to serve as a
a. measure of value and standard of value
b. measure of value and store of value
c. standard of value and store of value
d. medium of value and store of value
e. measure of value and deferred value
B
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Part of the decrease in real wages during the Civil War was due to deteriorating productivity because of ___
a. the inability of firms to replace machinery b. the need to use inexperienced workers c. the decline in coal production d. excessive days lost due to strikes
Historical note: Since the end of World War II, the U.S. economy has experienced
a. no recessions b. one recession c. approximately one recession each year d. 100 recessions e. 11 recessions
Exhibit 8-2 Consumption function
As shown in Exhibit 8-2, the 450 line represents:
A. autonomous consumption. B. real consumption spending. C. real disposable income. D. all points where real consumption equals real disposable income.
A decrease in wealth ________ consumption expenditure and ________
A) increases; shifts the consumption function upward B) increases; shifts the consumption function downward C) decreases; results in a movement downward along the consumption function D) decreases; shifts the consumption function downward E) decreases; shifts the consumption function upward