If every person is willing to accept money in payment, rather than goods and services, money serves as a:
A. medium of exchange.
B. unit of account.
C. store of value.
D. coincident exchange.
Answer: A
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Economic profit equals gross earnings minus the firm’s direct costs.
Answer the following statement true (T) or false (F)
An increase in quantity supplied can be caused by a(n)
a. decrease in quantity demanded b. rise in resource input prices c. increase in price d. decrease in the number of firms in the market e. tax levied on the producer
During the Civil War, the government faced two classic problems: How to acquire the financial resources it needed to carry on the affairs of government and, at the same time, stabilize the monetary system. It solved this dual problem by creating
a. Continental currency which soon rapidly depreciated b. the Second Bank of the United States c. a national banking system by enacting the National Bank Act d. the Exchequer of the Currency department to abolish the national currency e. speculative land notes that could easily be converted to gold
Which of the following is not an obstacle to development?
A. Overpopulation B. Excessive investment C. Political instability D. Corruption