A general medium of exchange tends to
A) reduce transaction costs.
B) make bartering more effective.
C) reduce the incentive to specialize and pursue one's comparative advantage.
D) accomplish all of the above.
E) accomplish none of the above.
A
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The number of buyers of sport utility vehicles, SUVs, decreases sharply. So the
A) demand curve for SUVs does not shift, but there is a movement downward along it. B) demand curve for SUVs shifts leftward. C) demand curve for SUVs shifts rightward. D) demand curve for SUVs does not shift, nor is there a movement along then demand curve. E) supply curve for SUVs shifts rightward.
A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000. The prevailing market price is $15
What will happen to the number of firms in the industry and to the industry's output in the long run? A) The number of firms remains constant and the industry's output decreases. B) The number of firms and the industry's output increase. C) The number of firms remains constant and the industry's output increases. D) The number of firms and the industry's output decrease.
Suppose a blackjack gambler approaches an insurance company and seeks to purchase an insurance policy that his next trip to Reno, NV will not net $10,000. The insurance company
A) will sell her an insurance policy because the proposal entails uncertainty not risk. B) will sell her an insurance policy because the proposal entails risk not uncertainty. C) will not sell her an insurance policy because the proposal entails uncertainty not risk. D) will not sell her an insurance policy because the proposal entails risk not uncertainty.
If Guy Lafleur is taxed $100 on an income of $1,000 . Patrick Roy is taxed $200 on an income of $2,000 . and Ryan Walter is taxed $300 on an income of $3,000 . the tax system is
a. progressive b. poll c. regressive d. excise e. proportional