The existence of money makes trade easier. How is it that money can also increase the standard of living?
The existence of money means the economy does not have to rely on barter for trade. This allows people to specialize in production, increasing productivity, leading to an increase in the amount of goods and services people can purchase.
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One role government can play in addressing market failure is to
A) enforce the rules of exchange. B) facilitate decision making for private goods. C) promote imperfect competition. D) increase economic uncertainty.
Most flat tax proposals call for exempting income to a certain minimum level
a. True b. False Indicate whether the statement is true or false
Assume the following situation. In year 1, a $400 capital stock generates a $100 GDP. One-fifth, or $20 of the $100 GDP, is put into investment. The capital/output ratio in year 1 is
a. 0.25 b. 1 c. 4 d. 100 e. 400
Between 1961 and 1972, the federal government spent as much on ______ as it did on building highways.
A. welfare B. space exploration C. Medicare D. crop subsidies