Which of the following criteria would make gold a poor medium of exchange?
A) value relative to its weight so that amounts large enough to be useful in trade can be easily transported
B) Its value depends on its purity, and its purity is not easy to visibly identify.
C) divisibility because different goods are valued differently
D) durability so that value is not lost by spoilage
B
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If the marginal propensity to consume (MPC) is 0.75, what is the value of the multiplier?
A) 4.0 B) 3.0 C) 2.0 D) 1.0
Household spending on education is included in
a. consumption, although it might be argued that it would fit better in investment. b. investment, although it might be argued that it would fit better in consumption. c. government spending, based on the fact that most higher-education students attend publicly-supported colleges and universities. d. None of the above is correct; in general, household spending on services is not included in any component of GDP.
Refer to the accompanying figure. Total utility increases with each additional pizza up to the ________ and then declines, but marginal utility ________ with each additional pizza consumed.
A. 7th pizza; increases B. 6th pizza; decreases C. 5th pizza; stays the same D. 6th pizza; increases
How are potential GDP and real GDP alike?
A. They are both influenced by changes in the price level. B. They both increase when the output gap is positive. C. They are both adjusted for inflation. D. They are two different terms for the same thing.