Why is barter less efficient than using money?
What will be an ideal response?
Barter is the direct exchange of one good for another good. In order for a trade to occur, each individual must want what another individual has to trade. This will not always occur. In addition, some goods are difficult to transport and divide into smaller units. Some goods also spoil easily. Without money, acquiring goods is much more complicated and time-consuming.
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One consequence of rent ceilings set below the equilibrium rent is that
A) a surplus of housing units develops. B) renters are no longer exploited by landlords. C) it makes the long-run housing supply more elastic. D) search costs for housing increase.
How does a firm in a competitive market decide what level of output to produce in order to maximize its profit?
What will be an ideal response?
The only solution available to a country experiencing extremely high rates of inflation is to:
A. revert to a gold standard. B. raise interest rates. C. peg your currency to another country's currency. D. reduce money growth.
Michael Jordan is currently worth 25,000 and the CPI is 108
What will be an ideal response?