Which scenario best demonstrates how money functions as a unit of account?
a. Haley knows that a gel pen costs $1.50 and a jar candle is $9, so a candle is equal to six pens.
b. Gregory gives Carlito $100 and receives a new pair of jeans in exchange.
c. Miguel makes a payment on his car loan every month.
d. Each quarter, Celeste deposits money into a Roth IRA to save for her retirement.
a. Haley knows that a gel pen costs $1.50 and a jar candle is $9, so a candle is equal to six pens.
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Which of the following is not a property of a competitive equilibrium?
A) markets clear. B) consumers and firms optimize given market prices. C) the government budget constraint is satisfied. D) increasing total factor productivity.
The usual term of office of members of the Board of Governors is
a. 2 years. b. 5 years. c. 7 years. d. 14 years.
If a person earns an 8 percent nominal rate of interest on his savings account in a year when inflation is 9 percent, the person's real rate of interest is
a. -1 percent. b. 1 percent. c. 8 percent. d. 9 percent.
A firm in a competitive market currently produces and sells 500 doorknobs for a price of $10 per doorknob. Which of the following events would decrease the firm's average revenue?
a. The firm increases its output above 500 doorknobs. b. The firm decreases its output below 500 doorknobs. c. The market price of doorknobs rises above $10. d. The market price of doorknobs falls below $10.