The "coincidence of wants" problem associated with barter refers to the fact that:
A. for exchange to occur, each seller must have a product that some buyer wants.
B. money must be used as a medium of exchange or trade will never occur.
C. specialization is restricted by the size or scope of a market.
D. buyers in resource markets and sellers in product markets can never engage in exchange.
Answer: A
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In the United States, ________ percent of all firms are sole proprietorships
A) 4 B) 14 C) 72 D) 82
If a firm is producing at an output where the total revenue curve crosses the total cost curve,
a. revenue is maximized b. cost is maximized c. cost is minimized d. profit is maximized e. profit is zero
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and real GDP rises. b. The real risk-free interest rate and real GDP remain the same. c. The real risk-free interest rate rises, and real GDP falls. d. The real risk-free interest rate falls, and real GDP remains the same. e. The real risk-free interest rate falls, and real GDP falls.
"Many Americans have been hurt by recent economic events. Raising the minimum wage is the best policy to improve the wages and employment opportunities of Americans." This argument is
a. correct because a higher minimum wage will increase total income which will stimulate aggregate demand and employment. b. incorrect because while some people will receive higher wages, others will experience less employment and fewer training opportunities. c. incorrect because the government has too big a deficit to pay for the increase in the minimum wage. d. correct because most minimum wage workers are household heads trying to earn enough to support their family.