Do all valuable items have price tags?
a. No, because some valuable items have no opportunity cost.
b. Yes, because everything has its price.
c. Yes, because price is the measure of opportunity cost.
d. No, some have no explicit price on them.
e. Yes, because only items that can be sold in markets have value.
d
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Money performs all of the following functions EXCEPT serving as a i. medium of exchange. ii. unit of account. iii. barter mechanism
A) i only B) ii only C) iii only D) i and ii E) ii and iii
Which of the following is a policy tool of the Fed? i. setting the required reserve ratios ii. conducting open market operations iii. quantitative easing
A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
If nominal GDP is 8,100 billion florins and the money supply is 900 billion florins, the velocity of circulation is
a. 900.0. b. 90.0. c. 81.0. d. 9.0. e. 8.1.
Firms that charge a price for their output in excess of marginal cost in the short run
A) are not maximizing profits. B) cannot find buyers for their output. C) are charging a markup. D) will suffer huge losses.