When you bought your textbook for this course, you were using money as a
A) store of value.
B) price mechanism.
C) medium of exchange.
D) unit of account.
C
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Mary Jane is willing to babysit for $6 an hour. Her neighbor has asked her to babysit for $8 an hour. Assuming Mary Jane accepts the offer:
A. her accounting profit will be $8 per hour, and her economic profit will be $0 per hour. B. her economic rent will be $2 per hour. C. her consumer surplus will be $2 per hour. D. her economic profit will be $8 per hour.
People will tend to "internalize externalities" when
A) responsibility for the consequences of actions is more clearly assigned to the actors. B) spillover costs and benefits become more common and widespread. C) they calculate more carefully the marginal costs and marginal benefits of their decisions. D) they feel less empathy for others.
In a short run competitive equilibrium
A) the market demand curve is horizontal. B) the market demand curve is downward sloping. C) the market demand curve is perfectly inelastic. D) All of the above are possible.
If there is currently an inflationary gap in the economy the Fed could work toward recovery through an open market sale of government securities
a. True b. False Indicate whether the statement is true or false