Which of the following most accurately states the economic significance of voluntary exchange? Select one:
a. Goods and services have value because they exist; exchange causes some people to win while others lose.
b. Exchange creates value by permitting trading partners to expand total output as the result of specialization and division of labor.
c. Exchange moves goods and services from people who value them more to parties who value the goods less.
d. Exchange can not create additional value because no new goods or services are produced
b. Exchange creates value by permitting trading partners to expand total output as the result of specialization and division of labor.
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If there is no one who is interested in borrowing from a bank,
a. the bank's excess reserves will be zero b. there will be no process of money creation c. the full money multiplier potential will be reached d. the legal reserve requirement must be equal to zero e. the legal reserve requirement must be equal to 100 percent
A property tax is a
a. progressive tax assessed on property ownership b. flat rate tax assessed on physical assets such as land c. flat rate tax assessed on income received from property ownership d. flat rate tax assessed on the sale of property and other physical assets e. progressive tax assessed on the sale of property and other physical assets
A perfectly inelastic demand curve is: a. parallel to the horizontal axis
b. parallel to the vertical axis. c. downward sloping with a slope of 45 degrees. d. U-shaped with the minimum value equal to zero.
Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities
Indicate whether the statement is true or false