When goods that have intrinsic value are used as money, if their value as money falls, the good:
A. is still useful to people for other reasons.
B. loses its intrinsic value.
C. is no longer useful to people for other reasons.
D. tends to gain in intrinsic value.
A. is still useful to people for other reasons.
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Refer to the above figure. If the government requires the natural monopolist to charge the efficient price, it will charge price
A) P5 and sell Q1 units. B) P2 and sell Q1 units. C) P3 and sell Q3 units. D) P1 and sell Q4 units.
Is the following a positive or normative statement? The federal minimum wage is lower than many state minimum wages
Martin, a U.S. citizen, travels to Mexico and buys a newly manufactured motorcycle made there. His purchase is included in
a. both Mexican GDP and U.S. GDP. b. Mexican GDP, but it is not included in U.S. GDP. c. U.S. GDP, but it is not included in Mexican GDP. d. neither Mexican GDP nor U.S. GDP.
When there is an externality in a market
A) the externality will move the market to an economically efficient equilibrium. B) the externality will cause the market price to be less than or greater than the equilibrium price. C) the government should use price controls to enable the market to reach equilibrium. D) government intervention may increase economic efficiency.