The use of money is more efficient than barter because the introduction of money
A. reduces the need for economic specialization.
B. reduces the need to exchange goods.
C. reduces transaction costs.
D. reduces the need for other stores of value.
Answer: C
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Fill in the blanks: ________ is defined as a sustained ________ in the purchasing power of money
A) Inflation; fall B) Deflation; fall C) Inflation; rise D) Answers B and C above are both true.
Cost-benefit analysis does not employ interpersonal utility calculations
a. True b. False
In the U.S. what occupation has the highest percentage of unionized workers?
a. Manufacturing industry b. Federal government c. Local governments d. Service industry
When the price of a product rises, the increase in quantity supplied will generally be greater in the long run than the short run because
a. producers maximize short-run, not long-run, profits. b. over time, new firms will enter the industry and old firms will expand their operations in response to the price increase. c. consumers are less resistant to higher prices in the long run than in the short run because they have fewer options in the long run. d. consumer income will expand in the long run, causing resource prices to rise, which will induce producers to increase output.