The "unit of account" function of money means it is the:
a. Asset people can use to accumulate wealth.
b. Unit in terms of which everything is valued and the basis for establishing relative prices between goods and services.
c. Barter value of a product for which a nation has a comparative advantage.
d. Unit in terms of which people write contracts.
e. Asset individuals get for goods and services and then use later to purchase other goods and services.
.B
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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Firm X ($/day) $500$514$530$555$585 Cost to Firm Y ($/day) $400$420$445$480 $520Cost to Firm z ($/day) $300$325$360$400 $550Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A. $36 per ton B. $21 per ton C. $26 per ton D. $41 per ton
A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal product of labor is 3, and the marginal product of capital is 5. The firm
A) is producing its current output level at the minimum cost. B) could reduce the cost of producing its current output level by employing more capital and less labor. C) could reduce the cost of producing its current output level by employing more labor and less capital. D) could increase its output at no extra cost by employing more capital and less labor. E) Both B and D are true.
On average, persons with more education tend to draw Social Security benefits for a
a. longer period of time than average b. shorter period of time than average c. period of time that is comparable to the U.S. average d. longer period of time if they have a master's degree but a shorter period of time if they have a Ph.D.
In 2015, the U.S. experienced a deficit in its balance of trade with
A. Africa. B. Europe. C. OPEC. D. all of the answers are correct.