Fiat money has
A) little to no intrinsic value but is backed by the quantity of gold held by the central bank.
B) little to no intrinsic value and is authorized by the central bank or governmental body.
C) value, because it can be redeemed for gold by the central bank.
D) a great intrinsic value that is independent of its use as money.
Answer: B
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Which of the following is true of small changes in productivity growth rates? a. Small changes in productivity growth rates decrease the productivity of workers in the short run compounding the problem. b. The effects of small changes in productivity growth rates are compounded over the years leading to large cumulative effects. c. Small increases in productivity growth rates cause output to
fall. d. The effects of small changes in productivity growth rates are negligible. e. Small decreases in productivity growth rates cause output to increase.
Which of the following statements concerning a monopolistically competitive industry is correct?
A. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right. B. If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right. C. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left. D. If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1, the consumer surplus:
A. decreases by area FGI. B. decreases by (area BCFG + area FGI). C. decreases by area GHI. D. decreases by (area CDGH + area GHI).
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. Suppose that the consumption function is C = 400 + 0.5Yd and taxes are $200 billion, at equilibrium the value of autonomous consumption is
A. $400 billion. B. $300 billion. C. $200 billion. D. $100 billion.