Which of these signifies the role of money in any economy?
a. It acts as a tool for poverty alleviation in an economy
b. It serves as a medium of exchange in an economy.
c. It indicates the economic wellbeing of a nation.
d. It helps to differentiate between the nominal and real income of a nation.
e. It is a clear indicator of the growth in national income.
b
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Which of the following is not a characteristic of a perfectly competitive market?
a. There is a large number of small firms. b. Firms sell a homogeneous product. c. Firms can easily enter or exit the market. d. Firms are price makers, not price takers.
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 120 units of labor, how much output does it produce?
A. 7,500 units B. 7,000 units C. 70 units D. 8,400 units E. 9,200 units
Balin purchases fair trade cocoa out of concern for workers' rights and environmental sustainability. He could purchase cocoa of equal quality at a lower price. Behavioral economists would consider Balin's purchase:
A. unusual in that it demonstrates concern for others. B. purely self-interested but motivated by something other than his financial well-being. C. as evidence that Balin is not acting purely in his self-interest. D. a bad decision because it ignores important information that could improve Balin's well-
Is it possible for a currency to appreciate relative to one currency, and depreciate relative to another?
A. No, a currency rises or falls against all currencies. B. No, this could happen only under the gold standard. C. Yes, but only if all governments agree on the new rates. D. Yes, this is possible in a world of floating rates.