Explain how money solves the problem of the "double coincidence of wants."
What will be an ideal response?
In an economy that does not rely on the use of money, if people are going to specialize at all they have to resort to barter, which is the exchange of one good or service for another. In the situation of barter, it may be likely that the individual who has what the other person wants will not want what the other person has. In this case multiple trades may be necessary to ultimately obtain what is desired. With the use of money, since everyone generally accepts it, one exchange will suffice. In reality you can say that money creates an immediate double coincidence of wants.
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All euro coins circulating in the different countries of the European Union have the same design
a. True b. False Indicate whether the statement is true or false
If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward and become steeper. b. The expenditure schedule will shift upward and become less steep. c. The expenditure schedule will shift downward and become less steep. d. The expenditure schedule will shift downward and become steeper.
Give an example of an oligopolistic market. Explain why it is oligopolist.
What will be an ideal response?
Which of the following is a TRUE statement about stock markets?
A. Economists can make above-average profits in the stock market because of their specialized knowledge of economics. B. The stock market on average over time is random and totally unrelated to the performance of the economy. C. It is always better to buy growth stocks than the older and more stable blue-chip stocks. D. It is illegal for a friend of a corporate executive to make large profits in the stock market by using his inside information.