Imagine an economy in which: (1) pieces of paper called yollars are the only thing that buyers give to sellers when they buy goods and services, so it would be common to use, say, 50 yollars to buy a pair of shoes; (2) prices are posted in terms of yardsticks, so you might walk into a grocery store and see that, today, an apple is worth 2 yardsticks; and (3) yardsticks disintegrate overnight, so
no yardstick has any value for more than 24 hours. In this economy,
a. the yardstick is a medium of exchange but it cannot serve as a unit of account.
b. the yardstick is a unit of account but it cannot serve as a store of value.
c. the yardstick is a medium of exchange but it cannot serve as a store of value, and the yollar is a unit of account.
d. the yollar is a unit of account, but it is not a medium of exchange and it is not a liquid asset.
b
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Which of the following variables is measured only at a particular point in time and not over different time periods?
a. The unemployment rate b. Consumer income c. The federal government's debt d. The federal government's budget deficit e. Total expenditure
Generally, an open economy can ____unavailable correct a country's stock of resources
Fill in the blank(s) with the appropriate word(s).
If labor is 20 percent of total costs in industry A and 70 percent in industry B, then other things equal, we would expect the elasticity of demand for labor to be
A) greater in industry A than in industry B. B) greater in industry B than in industry A. C) the same in both industries. D) uncertain since no general relationship exists between cost shares and elasticities.
The value of Gross Domestic Product (GDP), when estimated by the income approach, is the sum of
A. income earned by all factors of production, indirect business taxes, corporate income taxes, and personal income taxes. B. consumption expenditures, investment spending, and profits. C. wages, rent, interest, gross corporate profits, proprietor's income, and taxes unrelated to incomes, and depreciation. D. consumption, wages, rents, interest, and profits.