Which of the following is the most important advantage of using money rather than relying exclusively on barter?
A) The use of money encourages people to diversify and learn to do more things for themselves.
B) The use of money encourages people who want to exchange to become more closely acquainted.
C) The use of money lowers the cost of locating people with whom to exchange.
D) The use of money reduces opportunities for fraud and theft.
E) The use of money reduces selfishness because money in itself has no value.
C
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Liquidity refers to the
a. rapidity with which money flows through the economy. b. ease with which an asset can be converted into cash. c. ease with which banks move funds from checking to savings accounts. d. All of the above are correct.
A store is choosing between advertising a credit card fee or a discount for paying cash to its customers. People will care more about:
A. avoiding the fee rather than getting the discount. B. neither; since it's the same outcome, people won't care one way or another. C. getting the discount rather than avoiding the fee. D. It is impossible to say without more information.
Suppose the government of Japan increases its expenditure on goods and services. In the short run, this increase will
a) shift the AD curve in Japan rightward b) shift the AD curve in Japan leftward c) cause the price level in Japan to fall d) none of the above is correct
Refer to Table 17.2. If the price of output is $2 per unit and the wage rate is $40, how many workers should be hired?
A. six workers B. five workers C. four workers D. three workers