Which of the following is NOT required for paper dollars to work as a medium of exchange?
a. An established and regulated system of fiat money
b. Intrinsic value backed by gold
c. Government prosecution of counterfeiters
d. Acceptance as part of social convention
b
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Refer to Figure 9.5. If the government establishes a price floor of $2.50, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
Intra-industry trade is the buying and selling of goods within ____________ industry/industries from one country to another.
a. different b. non-competitive c. the same d. multiple
The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then domestic equilibrium quantity of cars will be ________.
A. 8,000 B. 12,000 C. 6,000 D. 10,000
Which statement is true?
A. There was brief depression in the early 1920s. B. Between 1921 and 1929 national output tripled. C. The automobile market was completely saturated by 1921 and sales remained low for the rest of the decade. D. None of these statements are true.