Money is used in an economy because:
a. goods and services are produced in accordance with demand
b. the exchange of goods for money is less troublesome than barter.
c. some goods or services are difficult to provide because of the scarcity of resources.
d. some merchants may offer goods for a select clientele.
b
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The opportunity cost of investing is represented by:
a. the present value of the investment. b. the marginal resource cost. c. the marginal revenue product. d. the interest rate.
A "decrease in the quantity demanded" means that
A) the demand curve has shifted to the right. B) the supply curve has shifted to the left. C) price has declined and consumers therefore want to purchase more of the good. D) price has increased and consumers therefore want to purchase less of the good.
If the natural rate of unemployment is 6%, but the Fed thinks it is 5% and attempts to use monetary policy to move unemployment from 6% to 5%, then in the short run which of the following variables will the Fed's policy raise?
a. the price level and real GDP b. the price level but not real GDP c. real GDP but not the price level d. neither real GDP nor the price level
Often single-owner proprietorships seem more profitable than they really are. The reason for this is that
A) they receive special tax benefits compared to corporations. B) they use different accounting procedures. C) they often fail to consider the opportunity cost of the labor provided by the owner. D) they are not allowed to deduct depreciation expense.