When money is used to set the value of goods such as cars, DVD players, and TVs, money is serving as a
A. medium of exchange.
B. standard of value.
C. store of value.
D. standard of deferred payment.
B. standard of value.
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In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economies of scale are exhausted. C) Economic surplus is maximized. D) Firms earn economic profit.
According to the median voter theorem, majority rule will
a. always produce an inconclusive outcome. b. produce the outcome least preferred by the median voter. c. produce the outcome most preferred by the median voter. d. produce an outcome that is inconsistent with transitive preferences.
The difference between M1 and M2 is given by which of the following?
a. M1 is limited to checkable deposits, whereas M2 contains currency. b. M1 is made up of currency and checkable deposits, whereas M2 contains M1 plus savings deposits and small time deposits. c. M1 includes only currency, whereas M2 contains M1 plus checkable deposits. d. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver.
Exhibit 4-3 Supply and demand curves
In Exhibit 4-3, an increase in quantity supplied would cause a movement from which equilibrium point to another, other things being equal?
A. E1 to E2. B. E1 to E4. C. E4 to E1. D. E3 to E4.