Inmates at the federal penitentiary at Lompoc, California, accepted packages of mackerel in exchange for goods and services. Why were they willing to accept mackerel in exchange for goods and services?
A) because mackerel is a good source of protein
B) because prison authorities deemed mackerel legal tender
C) because the inmates know that they could use the packages of mackerel to buy other goods and services
D) because the inmates do not wish to consume mackerel
Ans: C) because the inmates know that they could use the packages of mackerel to buy other goods and services
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The market clearing price for gasoline is $1.50, but the maximum price that can be charged is $1.29. This is an example of
a) a price control that will lead to a surplus of gasoline on the market. b) a price floor that will lead to a shortage of gasoline on the market. c) a price ceiling that will lead to a shortage of gasoline on the market. d) a price floor that will lead to a surplus of gasoline on the market.
The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
A. interest rate on savings. B. inflation on investment. C. interest rate on investment. D. interest rate on bond prices.
If workers in an industry become less productive, we would expect the supply of workers to increase.
A) supply of workers to increase.
B) supply of workers to decrease.
C) demand for workers to decrease.
D) demand for workers to increase.
In the $80 to $40 price range in Figure 20.1, demand is
A. Price-inelastic. B. Perfectly price-elastic. C. Unitary elastic. D. Price-elastic.