Describe the four functions of money. Must all money fulfill all four functions?
What will be an ideal response?
The four functions of money are:
1. Medium of exchange: something that is generally accepted as payment for goods and services.
2. Unit of account: a way of measuring value in an economy.
3. Store of value: the accumulation of wealth that can be used to buy goods and services in the future.
4. Standard of deferred payment: an asset that facilitates transactions over time.
To be considered money, an asset must fulfill the four functions.
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Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of raising another 100 cows?
A) 5.0 tons of potatoes B) 3.0 tons of potatoes C) 1.25 tons of potatoes D) 100 cows E) 1.0 ton of potatoes
Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that is below both AA and DD will therefore initially result in
A) an increase in output. B) a decrease in output. C) a contraction of the money supply. D) a depreciation of the home currency. E) an appreciation of the home currency.
A clear conclusion from offshoring debates and analyses is that:
a. It has significant potential to redistribute income from labor to businesses. b. Its effect is to increase unemployment in the nation from which offshoring takes. c. Its effect is always to decrease GDP in the nation from which offshoring takes. d. All of the above are clear conclusions from these debates and analyses.
Job search is the process of matching workers with appropriate jobs
a. True b. False Indicate whether the statement is true or false