Cigarettes served as money in some prisoner of war (POW) camps during World War II. Given this, we would expect to observe
A. only government-issued cigarettes being accepted as money.
B. people usually resorting to barter rather than using cigarettes as money.
C. prices of other goods expressed in terms of cigarettes.
D. no one ever smoking a cigarette.
Answer: C
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Demand curves with constant slopes must have different own-price elasticities as one moves along the demand curve.
Answer the following statement true (T) or false (F)
Economic goods are goods for which the quantity demanded exceeds the quantity supplied at a zero price.
A. TRUE B. FALSE
If a decrease in prices increases total revenue for a product in the short run, in the long run, it will: a. Increase total revenue by more
b. Increase total revenue by less. c. Decrease total revenue. d. Either b. or c. could result in the long run.
The inflationary effect of an expansionary monetary policy depends on the slope of the aggregate supply curve
a. True b. False Indicate whether the statement is true or false