The risk of specializing (in the production of one good or service) is
A) lower in a barter economy than in a money economy.
B) lower in a money economy than in a barter economy.
C) the same in both a money and barter economy.
D) greater the less likely you and the person you want to trade with have a double coincidence of wants.
E) b and d
E
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According to the graph shown, if the market is in equilibrium, producer surplus is:
A. $30.
B. $20.
C. $50.
D. $60.
Which of the following best defines the specialization of resources?
a. Workers are compensated as individuals. b. Special resources are needed to produce most goods. c. Each resource is paid for in full. d. Each resource is paid the most if it is specialized. e. Each resource is focused on a limited number of productive activities.
Which of the following is not a criticism of government spending as a solution to an inflationary gap?
a. It's hard to end new programs of government spending. b. Vested political interests tend to reduce spending. c. The economy has a natural tendency to self-correct. d. Government spending is not cost-free. e. Depreciation will lead to increased investment demand on its own.
Ceteris paribus, which of the following would you expect to have no effect on the demand curve for new automobiles?
A. An increase in the price of new automobiles. B. A rise in the price of gasoline. C. Consumer expectations that the price of new automobiles will be lower next year. D. Consumer expectations that a significant recession will develop and last for a year.