Barter works best when:
a. there is an absence of a double coincidence of wants
b. many different products are available in the economy.
c. money is readily available to establish relative prices.
d. each trader has what the other wants and wants what the other has.
e. highly developed economies achieve extensive specialization of labor.
d
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A survey made by Starc Motors reveals that the attrition rate for specialized workers is very high. In order to reduce attrition and increase productivity, the CEO of Starc Motors decides to pay the workers more than what market conditions dictate. The policy adopted by this company is based on the _____
a. efficiency wage theory b. model of option pricing c. insider-outsider model d. relative wage coordination argument
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than
A) 108,000. B) 111,111. C) 137,500. D) 110,000.
As the slope of the aggregate supply curve increases, this indicates that
A. the economy is getting close to potential GDP. B. the economy is reducing employment. C. inflation will be less of a problem. D. output is falling.
The appropriate formula for computing Gross Domestic Product using the income approach (excluding depreciation and indirect income taxes) is
A. wages + rent + interest + profits + indirect business taxes. B. wages + rent + interest + profits. C. wages + rent + interest + profits + indirect business taxes + depreciation. D. consumption + investment + government spending + net exports.