Which of the following provides the best explanation of why money is valuable?
a. Money is valuable because it is indivisible.
b. Money is valuable because it is scarce.
c. Money is valuable because it is backed by precious metals, primarily gold and silver.
d. Money is valuable because it has intrinsic value, independent of its use as a means of exchange.
b
You might also like to view...
Now, assume that the government institutes an emission fee of $16 thousand per unit of pollution. How many units of pollution would each polluter abate? Is the $16 thousand fee a cost-effective strategy for meeting the standard? Explain.
Assume that there are two firms, each emitting 20 units of pollutants into the environment, for a total of 40 units in their region. The government sets an aggregate abatement standard (AST) of 20 units. The polluters' cost functions are as follows, where the dollar values are in thousands: Polluter 1: TAC1 = 10 + 0.75(A1)2, Polluter 2: TAC2 = 5 + 0.5(A2)2, MAC1 = 1.5A1, MAC2 = A2.
When a country exports something to the rest of the world, domestic consumers ________ because the greater the ________ in price and ________ in quantity bought, the greater is the consumers' loss
A) win; rise; increase B) lose, rise; decrease C) win; rise; decrease D) lose; rise; increase E) lose; fall; decrease
Using Figure 3 below, suppose that the economy was at Y1. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. a natural rate of output.
Productive inefficiency could arise from
a. a waste of available labor b. a lack of resources c. an improvement in technology d. a movement along the production possibilities frontier e. too many goods being produced by the country or firm