Money almost always serves as the standard unit for quoting prices. This is another way of saying money serves as a:
a. medium of exchange.
b. store of value
c. standard of value.
d. commodity itself.
c
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When the plans of buyers and sellers are fully coordinated
A) the market clears. B) there is neither a shortage nor surplus of a good. C) quantity demanded equals quantity supplied. D) all of the above are true.
If Luxury Spas, Renew Spas, and Relax Spas are all competing in the spa market and Relax Spas consistently is the first to change prices, Relax Spas might be ________.
A) signaling to the other firms to consistently raise their prices B) offering to be the price leader C) signaling to the other firms to consistently lower their prices D) signaling to the other firms to consistently maintain their prices
Between two countries, comparative advantage is found by comparing the:
a. relative costs of production in each country. b. absolute costs of production in each country after accounting for inflation. c. labor hours required to produce a bundle of products in each country. d. level of interest rates in each country. e. shipping and transportation costs of each country.
A tax would not impose a welfare cost only if: a. the quantity exchanged did not change as a result. b. supply was perfectly elastic
c. supply was unit elastic. d. the demand curve was perfectly elastic.