One problem with fiat money, as compared to commodity money, is that:
a. more resources are used to create fiat money
b. there is frequently too little fiat money available.
c. there is a greater potential for inflation with fiat money.
d. fiat money must be turned in to the government to receive the commodity on which it is based.
e. fiat money is less divisible than commodity money.
c
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When Americans increase their demand for Japanese goods,
A) the supply of dollars will fall, and the demand for yen will fall. B) the supply of dollars will rise, and the demand for yen will rise. C) the demand for dollars will fall, and the demand for yen will rise. D) the demand for dollars will rise, and the demand for yen will rise.
Which is not one of the criteria necessary for a commodity to make a suitable medium of exchange?
A) It should be of standardized quality. B) It should be valuable relative to its weight. C) It should be durable. D) It should have intrinsic value.
Taxes provide individuals with incentive to:
(a) Increase the number of working hours. (b) Increase productivity by working longer and harder. (c) Direct resources to uses where taxes are relatively low or nonexistent. (d) Buy and save more.
The primary objective of a for-profit firm is to ___________
a. maximize agency costs b. minimize average cost c. maximize total revenue d. set output where total revenue equals total cost e. maximize shareholder value