Without an accepted medium of exchange
A. people would have to rely on gold or silver in order to exchange goods and services.
B. there would be no trade.
C. prices are very difficult to determine.
D. goods and services would be exchanged by barter.
Answer: D
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In economics as well as in social relations in general, clear and concise information
A) eliminates the need for cooperation. B) guarantees effective cooperation. C) makes cooperation easier to achieve. D) makes cooperation more difficult to achieve.
Assume an auto firm's factories are capable of producing both large and small cars and are operating at full capacity. Assume the price of large cars increases due to a shift in consumers' preferences toward large cars and away from smaller cars
What would reasonably be expected to happen to the equilibrium price and quantity of the firm's small cars? A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. D) Equilibrium price and quantity would both increase.
Refer to Figure 9.9. At free trade, domestic consumer surplus would be
A) $20,000. B) $27,500. C) $40,000,000. D) $45,000,000. E) $75,625,000.
Policy makers:
A. dislike inflation because it redistributes income. B. dislike inflation because it allows individuals to maintain illusions. C. like inflation because it allows individuals to maintain illusions. D. like inflation because it makes society richer.