Which of the following is the best definition of money?
A) Currency plus outstanding credit card balances.
B) The outstanding credit debt of households and businesses.
C) Anything that widely serves as a medium of exchange, unit of account, and store of value.
D) Various types of paper notes and coinage backed by precious metals.
C) Anything that widely serves as a medium of exchange, unit of account, and store of value.
You might also like to view...
An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run
Indicate whether the statement is true or false
A high proportion of the population under the age of 15 undermines economic growth because
a. the young require more infrastructure than older people b. the young require more capital goods than older people c. they present such a huge increase in human capital d. the young consume but they do not produce e. they increase per capita income
Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E. Base-year prices are $1 for each good. Real GDP in the current year equals _________ and GDP equals _________
A) $550; $150 B) $130; $530 C) $150; $550 D) $530; $130 E) none of the above
While a firm in long-run equilibrium will make zero economic profits, it is still possible for the firm to make ______________ profits.
Fill in the blank(s) with the appropriate word(s).