Which of the following statements is false?
A. Round stones with holes in the center can serve as money.
B. Money eases the process of exchanging goods and services in a modern economy.
C. Money serves as a measure of value only when it is backed by gold or silver.
D. Money is used as a measure of the relative value of goods and services in an economy.
Answer: C
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In a certain economy, the components of aggregate spending are given by: C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 925 B. 450 C. 1,125 D. 370
Without any change in the supply of labor, how are the following events likely to change the equilibrium wage and employment level in a firm that manufactures umbrellas?
a) A forecast of higher rainfall this year b) A decrease in the price of raincoats c) The introduction of labor-saving technology in the factory
Distinguishing between stock measures and flow measures of the labor force, the stock measures are
A) the labor force only. B) the number of people who lost their jobs and the number of people who found jobs only. C) the total number of people who are unemployed only. D) the total number in the labor force and the total number of people who are unemployed only.
If there are only 10 firms in an industry, each with 10 percent of industry sales, this is an example of
a. monopolistic competition b. unbalanced oligopoly c. balanced oligopoly d. perfect competition e. insignificant firm market power