A popular teacher hands out candy bars to her students as an incentive for good behavior. If students choose to, they could then trade one candy bar for a sheet of stickers or two candy bars to skip a quiz. In this classroom, the teacher is using candy bars as a form of:
a) barter.
b) commodity money.
c) fiat money.
d) yummy money.
Ans: b) commodity money.
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Political business cycles which are the results of economic fluctuations that occur when discretionary policy is manipulated for political gain
Indicate whether the statement is true or false
Refer to the graph shown. A decrease in production costs is likely to cause a movement from:
A. B to D. B. B to A. C. C to A. D. C to D.
When a new firm begins production in the ________ model, it assumes its demand curve is the market demand less the amount the other firm is selling.
A. price leadership B. Cournot C. collusion D. cartel
Which of the following is most likely to be predicted by the Heckscher-Ohlin theory?
A. The wage rate of the low-skilled workers will be higher in the developing countries than in the developed countries. B. The industrialized nations will mainly export labor-intensive goods. C. Countries like China will completely specialize in the production of primary products. D. The developing countries will mainly export labor-intensive goods.