People accept fiat money because:
a. they can exchange it for gold whenever they want
b. they can sell the currency notes as a commodity as well.
c. the government backs its value with a promise.
d. they can consume it as a good if required.
c
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Countries that enjoy economic growth
A) have property rights and markets which provide incentives for discovering new technologies. B) place controls on property rights so that firms are protected from competition. C) restrict international trade so that domestic industries can grow. D) have economies that allow the government to make decisions in everyone's best interests. E) place high taxes on saving and investment.
Social security provides payments
A) for food so that the poor can obtain a basic diet. B) to aid married families with dependents. C) to unemployed able-bodied workers. D) to retired and disabled workers.
Refer to Figure 3.1. Which of the following is true concerning Alvin's marginal rate of substitution?
A) It is diminishing. B) It is positive but varies along the indifference curve. C) It is constant. D) It is zero.
What is one possible reason a firm that produces balloons might outsource its accounting department?
A) There are no longer economies of scale. B) There are now economies of scope. C) There are no longer economies of scope. D) There are now economies of scale.