Related to the Economics in Practice on p. 512: In Santa Cruz, the red feathers of the Scarlet Honeyeater bird were used as currency. In this instance, the feathers would be considered
A. legal tender.
B. token money.
C. fiat money.
D. commodity money.
Answer: D
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Refer to Figure 16.1. If a firm expects that consumer preference for its product will increase in the future, this is best represented by a movement from
A) point A to point C. B) point B to point A. C) point A to point B. D) point C to point A.
Which of the following phrases does not describe an essential characteristic of a factory?
a. produces a standardized product to be sold in a wide market b. relies on stocks and bonds in order to finance plants and machinery c. assembles workers under a definite organizational discipline d. carries out complex operations in one building or in adjacent buildings
The rules of the game refer to:
a. any factor that facilitates production and exchange, such as tax laws and property rights. b. a gradual but consistent change in the price level until a fair price is attained c. the set of election laws that ensure that all elections are fair. d. the rules that a firm must follow in order to earn a profit. e. the requirement that households must supply labor to firms.
Which of the following is NOT a reason people save?
A. To reach consumption bundles in the future that would otherwise be unattainable B. To protect against unforeseen expenses C. To maximize their current consumption D. To earn additional money on unused income