When money prices are used to facilitate comparisons of value, money is said to function as a
A) unit of account.
B) medium of exchange.
C) store of value.
D) payments-system ruler.
A
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Suppose you observe an increase in the equilibrium price of coffee and a decrease in the equilibrium quantity of coffee. Of the options listed below, this is most consistent with:
A. a decrease in the cost of producing coffee. B. an increase in consumer income assuming coffee is a normal good. C. an increase in the cost of producing coffee. D. a decrease in consumer income assuming coffee is a normal good.
Economic theory suggests that the standard of living of American workers would rise if
a. workers were forced to retire earlier. b. automation were outlawed. c. technological improvements increased output per worker-hour. d. the minimum wage were doubled.
Recall the Application about the factors involved in causing recessions, and the causes of recessions in the United States from 1893 to 1990 to answer the following question(s).According to this Application, the recession in 1981 was caused by:
A. increasing oil prices which resulted in a decrease in aggregate supply. B. the government cutting back on aggregate demand to reduce inflation. C. a decrease in aggregate supply resulting from U.S. bank collapses. D. massive immigration from Europe to the United States.
"Learning by doing" has the effect of causing:
A) a movement down the LRAC curve. B) a movement up the LRAC curve. C) the LRAC curve to shift up. D) the LRAC curve to shift down.