When money is the basic measure of economic value, it serves as a:
A. store of value.
B. unit of account.
C. double coincidence of wants.
D. medium of exchange.
Answer: B
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What is meant by product differentiation?
What will be an ideal response?
According to the graph shown, total surplus is area:
A. A + B + C.
B. B.
C. A.
D. A + B.
In a perfectly competitive industry, influence over price is exerted by
a. individual sellers. b. individual buyers. c. the largest firms. d. the forces of supply and demand.
In a recessionary gap, the implications of downward wage inflexibility are that there will be
A) further leftward shifts of AD that worsen unemployment. B) no further leftward shifts of AD, allowing the shifts in SRAS to close the recessionary gap. C) no further leftward shifts of SRAS, allowing the shifts in AD to close the recessionary gap. D) no rightward shifts of SRAS, allowing for the possibility of persistent high unemployment.