A barter economy is different from a money economy in that a barter economy
A. encourages specialization and division of labor
B. involves higher costs for each transaction
C. eliminates the need for a double coincidence of wants
D. has only a few assets that serve as a medium of exchange
E. promotes market exchanges
Ans: B. involves higher costs for each transaction
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In the above figure, when the efficient quantity is produced the marginal social benefit of the last magazine is
A) $1. B) $3. C) $5. D) some amount not given in the above three answers.
Use the data in the Worked Problem on p. 287 (page 699 in Economics). Calculate the change in equilibrium expenditure when investment decreases by $150 billion
What will be an ideal response?
On the graph above, suppose the economy has moved from point H to point G. If the shock was temporary and inflation expectations are adaptive, the economy will next ________
A) return to point H B) move to point F C) move to a point between points G and H D) remain at point G E) none of the above
Which one of the following would be considered to be a risk management technique used by farmers?
A. Changing the parity ratio B. Increasing product demand C. Buying more arable farm land D. Using crop revenue insurance