Money serves as a medium of exchange. This means that you can
A. increase the economic growth rate in the long run by printing more money.
B. compare values across several items by looking at the prices in terms of money.
C. accept money as payment for the goods and services you sell.
D. hold on to money to use at a later time.
Answer: C
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The amount of time elapsed since a price change impacts the elasticity of demand because as more time passes,
A) people can find more substitutes, and so the elasticity of demand decreases. B) people can find more substitutes, and so the elasticity of demand increases. C) people's incomes will increase, and so the elasticity of demand decreases. D) the good's price will have a chance to return to its previous level.
Assume that the price for swimming pool maintenance services has risen and sales of these services have fallen. One can conclude that
A) the demand for swimming pool maintenance services has increased. B) swimming pool maintenance services are becoming more technologically advanced. C) the law of supply has been violated. D) the supply of swimming pool maintenance services has decreased.
If a good is a normal good, an increase in income will
A) decrease the quantity demanded of the good. B) increase the demand for the good. C) cause the demand curve for the good to shift to the left. D) cause a movement down along the demand curve.
The trade-off between physical capital and current consumption:
A. is harder for poorer countries than rich ones. B. is easier for poorer countries than rich ones. C. involves giving up less current consumption for poor countries, since they have little. D. involves giving up more current consumption for rich countries, since they have so much.