When economists say that money promotes ________, they mean that money encourages specialization and the division of labor. A) bargaining B) contracting C) efficiency D) greed ANSWER C
Date: September 10th, 2020
A simultaneous improvement in the technology used to produce computers and increase in the number of buyers in the computer market would cause the equilibrium price of computers to drop but have an uncertain effect on equilibrium quantity. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
From 1950-2014 the price level in the United States increased more than A) twofold. B) threefold. C) sixfold. D) tenfold. ANSWER D
Date: September 10th, 2020
Under a fixed exchange rate system, the central bank of a country experiencing a balance of payments deficit will: A) increase the supply of the domestic currency to prevent currency depreciation. B) increase the demand for the domestic currency to prevent currency depreciation. C) increase the supply of domestic currency to prevent a currency appreciation. […]
Date: September 10th, 2020
A firm encounters its “shutdown point” when: A) average total cost equals price at the profit-maximizing level of output. B) average variable cost equals price at the profit-maximizing level of output. C) average fixed cost equals price at the profit-maximizing level of output. D) marginal cost equals price at the profit-maximizing level of output. […]
Date: September 10th, 2020
An increase in default risk on corporate bonds ________ the demand for these bonds, but ________ the demand for default-free bonds, everything else held constant. A) increases; lowers B) lowers; increases C) does not change; greatly increases D) moderately lowers; does not change ANSWER B
Date: September 10th, 2020
All else constant, there is an inverse relationship between the price elasticity of demand and the marginal revenue resulting from a decrease in price. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Money serves all of the following functions except: A) medium of exchange. B) store of value. C) unit of account. D) measure of power. ANSWER D
Date: September 10th, 2020
Consider the market for air travel. A simultaneous increase in the price of fuel and another terrorist attack on United States soil would cause the equilibrium quantity of air travel to go down, but have an uncertain effect on equilibrium price. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When compared to exchange systems that rely on money, disadvantages of the barter system include A) the requirement of a double coincidence of wants. B) lowering the cost of exchanging goods over time. C) lowering the cost of exchange to those who would specialize. D) encouraging specialization and the division of labor. ANSWER A
Date: September 10th, 2020
