A good can serve as money only if
A) citizens accept the good as a means of payment for transactions and debts.
B) government mandates that the good must be accepted in payment of debts.
C) it is declared by authorities to be legal tender.
D) it has intrinsic value or if it is backed by precious metals.
A
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Compared to the natural rate of unemployment, the actual unemployment rate is
A) always lower. B) always higher. C) always the same. D) higher in periods when GDP fails to grow at its normal rate.
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the consumer's burden of the tax
A) is Pa - Pc under either supply curve. B) is Pa - Pd if the supply curve is S0 and Pb - Pe if the supply curve is S1. C) is Pa - Pc if the supply curve is S0 and Pb - Pc if the supply curve is S1. D) is Pb - Pc under either supply curve.
An expansionary monetary policy is always capable of boosting aggregate investment
a. True b. False Indicate whether the statement is true or false
Elaine owns a beautiful diamond ring she purchased for $2,500. When she has it appraised she learns that it is now worth $3,000. Based on this information:
A. Elaine's wealth is unchanged. B. Elaine's saving this year has increased by $500. C. Elaine's saving this year has decreased by $500. D. Elaine has experienced a $500 capital gain.