What function is money playing in each of these situations: a. You walk into a store in Germany and see that all the prices are in euros. b. You buy a candy bar for $1.25. c. Your Aunt Jane keeps $100 bills tucked into many books in her house
What will be an ideal response?
a. unit of account;
b. medium of exchange;
c. store of value.
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All economic activity in the underground economy represents the production of illegal goods and services
Indicate whether the statement is true or false
Which of the following is one of the three main reasons for the spread of democracy?
a. Democratic regimes failed to deliver economic progress to the vast bulk of their populations. b. Economic advances in the past quarter-century have led to the emergence of a class of ruling elite c. New information and communication technologies have broken down the ability of the state to control access to uncensored information. d. Totalitarian regimes delivered economic progress to the bulk of their populations but not enough to the power brokers.
When the Fed prints and issues bills, it creates:
A. a financial liability for the holder of the IOU. B. a real asset. C. a financial asset for itself. D. money.
Online music streaming services, such as Spotify, have decimated the market for CDs. Based on this information, you can conclude that streaming services:
A. and CDs are complementary goods. B. has a higher price elasticity than CDs. C. and CDs are substitutes. D. has a higher income elasticity than CDs.