One of the benefits of money as a medium of exchange is that
A) it allows individuals to compare the relative value of goods.
B) it allows for specialization that leads to economic efficiencies.
C) over time it will become more valuable so that individuals can purchase more goods and services.
D) it allows for private transactions such as trading vegetables for medical services.
B
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The supply of product X is elastic if
A. an 8% increase in price generates an 8% increase in quantity supplied. B. a 10% decrease in price does not affect quantity supplied. C. a 5% increase in price generates a 7% increase in quantity supplied. D. a 7% decrease in price generates a 5% decrease in quantity supplied.
Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?
A) The Soviet economy grew slowly because of the slow rate of technological change. B) The Soviet economy grew because it added labor through immigration policy in the 1950s. C) The Soviet economy increased capital per worker very slowly from 1950 through 1980. D) The Soviet economy grew rapidly in the latter half of the 20th century.
If an individual has $10,000 in a savings account paying 3% and the inflation rate is 2%, the nominal interest rate is
A) 3% and the real rate is 5%. B) 5% and the real rate is 7%. C) 5% and the real rate is 3%. D) 3% and the real rate is 1%. E) 5%.
Refer to the graph shown. The approximate elasticity of segment AC is:
A. 1/2. B. 3/2. C. 2/3. D. 1/3.