Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter
A) I only
B) II only
C) Both I and II
D) Neither I nor II
C
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Regulation of a natural monopoly will maximize the sum of consumer surplus and producer surplus if the firm is regulated with
A) an average cost pricing rule. B) a marginal cost pricing rule. C) rate of return regulation. D) All of the above answers are correct.
Students arriving late to class are a potential negative externality because their tardiness may interrupt the instructor and distract students
Can you think of any way in which this externality could be curbed? That is, can you think of any methods that could be employedto internalize this negative externality?
Which of the following is correct if there is a favorable supply shock?
a. the short-run aggregate supply curve and the short-run Phillips curve both shift right. b. the short-run aggregate supply curve and the short-run Phillips curve both shift left. c. the short-run aggregate supply curve shifts right and the short-run Phillips curve shifts left. d. the short-run aggregate supply curve shifts left and the short-run Phillips curve shifts right.
The objectives set for the Fed by Congress are:
A. specific on the growth rate for the economy, but vague on all other objectives. B. by design, quite vague, allowing the Fed to really set its own goals. C. specific regarding inflation, but vague on all other goals. D. very specific; this adds to the Fed's accountability.