Money that has no value other apart from its use as money:
A) is known as commodity money
B) is known as fiat money
C) will result in a return to a barter system
D) will result in rapid inflation
B
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A criticism of the unemployment rate is that:
a. underemployment is measured in the calculation. b. the data includes part-time workers as fully employed. c. discouraged workers are included in the calculation. d. all of these are problems.
In a closed economy private saving is $500 billion and the government budget deficit is $100 billion. What is investment?
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.If Sarah and Joe are working on a project together and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. Joe will put forth low effort, and Sarah will put forth high effort. B. both Joe and Sarah put forth low effort. C. both Joe and Sarah put forth high effort. D. Joe will put forth high effort, and Sarah will put forth low effort.
Each of the following is consistent with Keynesian theory EXCEPT
A. Sometimes strong government intervention is necessary to end a depression. B. The expected rate of profit is more important than the interest rate in determining the level of investment in an economy. C. Our economy always tends toward equilibrium GDP but not necessarily full employment GDP. D. Flexible wages and prices present in modern economies will end a recession.