Exam (elaborations)
Chapter 1 Economic Issues and Concepts (Ragan)
- Course
- Institution
Chapter 1 Economic Issues and Concepts (Ragan)
[Show more]
Seller
Follow
medusain
Content preview
13) The barter system of exchange is inefficient becauseA) "fair" values cannot be defined without the use of money.
B) bargaining power is unequal between rich and poor.
C) the double coincidence of wants may not exist.
D) markets do not exist.
E) exchange partners need to know each other.
Answer: C
Diff: 2
Topic: 1.2c. division of labour, specialization and trade
Skill: Applied
Learning Obj.: 1-3 Explain how specialization gives rise to the need for trade, and how trade is facilitated by money.
User2: Qualitative
14) Which of the point(s) below is (are) true of money?
1) Money eliminated the need for barter.
2) Money allowed for specialization of labour and expansion of trade.
3) Money facilitated the development of a market economy.
4) Trade did not take place before the introduction of money.
A) only 1.
B) only 1 and 2
C) Only 1 and 4
D) Only 1, 2, and 3.
E) All of the points are true.
Answer: D
Diff: 2
Topic: 1.2c. division of labour, specialization and trade
Skill: Recall
Learning Obj.: 1-3 Explain how specialization gives rise to the need for trade, and how trade is facilitated by money.
User2: Qualitative
15) Money facilitates trade and specialization by
A) allowing an efficient barter system to develop.
B) increasing the value of gold.
C) eliminating the need for barter.
D) reducing the shift of resources between uses.
E) providing employment for coin makers.
Answer: C
Diff: 1
Topic: 1.2c. division of labour, specialization and trade
Skill: Recall
Learning Obj.: 1-3 Explain how specialization gives rise to the need for trade, and how trade is facilitated by money.
User2: Qualitative
, 16) With reference to the circular flow of income, how is the allocation of resources largely decided?
A) by central authorities only
B) by central authorities and firms only
C) by firms and households acting independently
D) by political parties and firms only
E) by individuals only
Answer: C
Diff: 1
Topic: 1.2b. circular flow of income and expenditure
Skill: Recall
Learning Obj.: 1-4 Identify the economy's decision makers and see how their actions create a circular flow of income
and expenditure.
User2: Qualitative
17) The key decision makers in a market economy are
A) households, firms, and government.
B) individual citizens, non-profit organizations, and the Bank of Canada.
C) governments and all institutions under government control.
D) large corporations and labour organizations.
E) corporations and governments.
Answer: A
Diff: 1
Topic: 1.2b. circular flow of income and expenditure
Skill: Recall
Learning Obj.: 1-4 Identify the economy's decision makers and see how their actions create a circular flow of income
and expenditure.
User2: Qualitative
18) Economists usually assume that households and firms, respectively, maximize
A) income and sales.
B) savings and profits.
C) wages and revenues.
D) utility and profits.
E) expenditures and profits.
Answer: D
Diff: 2
Topic: 1.2b. circular flow of income and expenditure
Skill: Recall
Learning Obj.: 1-4 Identify the economy's decision makers and see how their actions create a circular flow of income
and expenditure.
User2: Qualitative
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller medusain. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75759 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now