It will cost Avery $5 to buy a sandwich and $50 to get his hair cut. Based on this information, Avery knows that a haircut has the same value as 10 sandwiches. This best exemplifies money’s function as a ______.
a. unit of account
b. means of deferred payment
c. medium of exchange
d. store of value
a. unit of account
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The Malthusian prospect of starvation of the population could be prevented by: a. increasing the amount of land available for agriculture
b. investing in research and development of new technologies. c. expanding food production on available land. d. all of the above
Why did the monetary base increase rapidly during the economic crisis of 2008?
a. The Fed sold financial assets and extended fewer loans. b. The Fed increased both its purchase of assets and quantity of loans extended. c. The Fed increased its purchases of assets, but offset this with an increase in the reserve requirement. d. The Fed sold financial assets, but offset this with a reduction in the reserve requirement.
Producer surplus is the ________ summed over the quantity sold
A) value of a good minus the price received for it B) price received for a good minus the value of the good C) price received for a good minus its marginal cost D) marginal cost of making a good minus the price received for it
Newspaper machines and soda vending machines operate very differently. The newspaper machine is a mechanical box. You place your four quarters in the machine and you open the door and low and behold there is a stack of newspapers at your disposal
Most people take one and close the door for the next patron to purchase his own copy. But notice that soda vending machines don't operate the same way. They are also mechanical but when the four quarters are inserted and a selection is made only one can of soda is available for the consumer to purchase. Explain in terms of marginal utility why these two machines are designed so differently?