Using money as a medium of exchange:
a. requires people to match goods wanted with goods available.
b. inhibits economic transactions.
c. reduces the need for barter in the economy.
d. reduces the need for a banking system.
e. reduces the range of feasible exchanges in the economy.
c
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As a result of the government's rescue of financial firms and the auto industry in 2008, which of the following occurred?
i) The government's demand for loanable funds increased the real interest rate. ii) Investment expenditures were crowded out. iii) The supply of loanable funds curve shifted leftward. A) ii and iii B) i only C) ii only D) i and ii E) i, ii and iii
Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:
A) the number of additional competitors is very small. B) the cost conditions for the four firms differ substantially. C) individual firms are able to offer secret price discounts to selected buyers. D) demand for meat and fresh vegetables is falling.
According to the Gordon-Growth model, what is the value of a stock with a dividend of $2, required return on equity of 8% and expected growth rate of dividends of 4%?
A) $25 B) $26 C) $50 D) $52
The marginal (dollar) cost of an additional plate of food to a patron at an "All-You-Can-Eat" restaurant is: a. equal to the price paid for the meal divided by the number of plates of food consumed. b. equal for every plate of food consumed during the meal
c. equal to zero. d. equal to the price paid for the meal (since there is no such thing as a free lunch).